Latest news with #exportcurbs
Reuters
3 hours ago
- Business
- Reuters
What to know about China's rare earth export controls
BEIJING, June 4 (Reuters) - Global manufacturers have raised the alarm on China's decision to curb exports of rare earths alloys, mixtures and magnets. Here is an overview of rare earths and China's measures: Rare earths are a group of 17 silvery-white elements. One of their most important uses is in making magnets that power motion for cars, cell phones, missiles and other electronics. While not rare in the sense of being uncommon, they tend to occur in small quantities or mixed with other minerals, making extraction difficult and costly. China mines about 60% of the world's rare earths and makes 90% of rare earth magnets. It sets quotas on output, smelting, and separation, which are monitored as a barometer of global supply. One of the most difficult processing steps is separating individual rare earths from each other. While U.S. scientists helped developed a process called solvent extraction in the 1950s, radioactive waste made it unpopular in the United States. Spurred by the government, China has expanded the industry since the 1980s, spending the last 30 years mastering solvent extraction, while cheap labour and relatively lax environmental standards give it a cost advantage. China has put bans, opens new tab on its technologies for separating rare earths as well as producing magnets. New separation technologies are being developed but are not yet widely used. On April 4, China added seven of the 17 rare earths metals - such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium-related items - to a list of export controls two days after President Donald Trump's sweeping tariffs took U.S. trade barriers to their highest in a century. Exporters have to apply for a licence that industry sources say can take two to three months or longer, and shipments have been halted at many Chinese ports as applications are processed. On May 13, China agreed to remove recent non-tariff countermeasures issued after April 2, which includes the rare earth curbs, as part of a temporary tariff deal, U.S. trade representative Jamieson Greer said. However, since then, Greer has said China was "slow-rolling" their removal, and Trump complained that China violated the deal. China has defended its export curbs as "non-discriminatory" and not targeted at any specific country. The foreign ministry told media on Friday that China was ready for talks on the issue with relevant nations. Global automakers have warned that the measures could cause production delays and widespread shutdowns because rare earths are employed in key components, such as automatic transmissions and power steering.
Reuters
26-05-2025
- Business
- Reuters
Chinese customs caution slows some rare earth magnet exports, sources say
BEIJING, May 26 (Reuters) - Chinese customs are holding up some shipments of lower-performance rare earth magnets used in appliances and consumer electronics because of confusion over how to apply Beijing's export curbs, according to three sources. Rare earth magnets blend elements from the family of 17 elements and the mix determines performance. High-performance types go into cars, wind turbines and fighter jets with weaker ones used in consumer electronics and household appliances. However, China's customs website only lists a single code for rare earth magnets, despite their different chemistries. When Beijing restricted exports of several high-performance types along with other rare earths in April, it excluded some low-performance ones. Customs officials have nonetheless barred at least two shipments because they share the same code identifier, said two sources familiar with the matter. The shipments had still not left China even after the exporters provided documents showing there were no curbs on the types of magnets involved, said the sources who spoke on condition of anonymity, as the matter is a sensitive one. China's commerce ministry and customs did not respond to Reuters request for comment. European auto parts and appliance maker Bosch said bottlenecks in the supply of rare earths key for both electric motors and consumer goods were affecting its suppliers, who had to furnish a lot of detailed information to get export licences. "The process for our suppliers to apply for export licences for various rare earths ... since April, is complex and time-consuming, partly due to the need to collect and provide a lot of information," a Bosch spokesperson said. Not all exports are affected by the customs delays, however, with officials of appliance makers Electrolux and Smeg both telling Reuters they were not facing issues. Customs data shows China's exports of permanent magnets fell 51% to 2,626 tons in April, the first month of data following the curbs. Exports were 15,267 tons in the year's first quarter.
Yahoo
25-05-2025
- Business
- Yahoo
NVIDIA Corporation (NVDA) to Launch Cheaper Blackwell AI Chip for China, Says Report
NVIDIA Corporation (NASDAQ:NVDA) is set to launch a new AI chipset for China amid U.S. export curbs, Reuters reported on Saturday, with mass production likely to begin as early as next month. The GPU will be part of NVIDIA Corporation (NASDAQ:NVDA)'s Blackwell-architecture AI processors. It is expected to be priced between $6,500 and $8,000, significantly lower than the recently restricted H20 model. A close-up of a colorful high-end graphics card being plugged in to a gaming computer. The lower price reflects the GPU's weaker specifications, which sources say will be based on RTX Pro 6000D and use GDDR7 memory in place of more advanced memory. They also added that it will not use TSMC's advanced CoWoS packaging technology. China is an attractive market for NVIDIA Corporation (NASDAQ:NVDA). The country accounted for nearly 13% of its sales last year. This is the third instance of the company having to tailor a GPU for the Chinese market due to restrictions from American authorities. After the U.S. banned the H20 chip in April this year, NVIDIA Corporation (NASDAQ:NVDA) considered manufacturing a downgraded version of the chip for China, but the plan did not work out. Sources also told Reuters that NVIDIA Corporation (NASDAQ:NVDA) was planning to build another Blackwell AI chip for China, with production expected to begin in September. The company's market share in China has declined since 2022 due to the U.S. export restrictions, resulting in an increasing number of Chinese customers turning toward Huawei's chips. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now. Disclosure: None.
Yahoo
25-05-2025
- Business
- Yahoo
NVIDIA Corporation (NVDA) to Launch Cheaper Blackwell AI Chip for China, Says Report
NVIDIA Corporation (NASDAQ:NVDA) is set to launch a new AI chipset for China amid U.S. export curbs, Reuters reported on Saturday, with mass production likely to begin as early as next month. The GPU will be part of NVIDIA Corporation (NASDAQ:NVDA)'s Blackwell-architecture AI processors. It is expected to be priced between $6,500 and $8,000, significantly lower than the recently restricted H20 model. A close-up of a colorful high-end graphics card being plugged in to a gaming computer. The lower price reflects the GPU's weaker specifications, which sources say will be based on RTX Pro 6000D and use GDDR7 memory in place of more advanced memory. They also added that it will not use TSMC's advanced CoWoS packaging technology. China is an attractive market for NVIDIA Corporation (NASDAQ:NVDA). The country accounted for nearly 13% of its sales last year. This is the third instance of the company having to tailor a GPU for the Chinese market due to restrictions from American authorities. After the U.S. banned the H20 chip in April this year, NVIDIA Corporation (NASDAQ:NVDA) considered manufacturing a downgraded version of the chip for China, but the plan did not work out. Sources also told Reuters that NVIDIA Corporation (NASDAQ:NVDA) was planning to build another Blackwell AI chip for China, with production expected to begin in September. The company's market share in China has declined since 2022 due to the U.S. export restrictions, resulting in an increasing number of Chinese customers turning toward Huawei's chips. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
