The rivalry between China and the US intensifies! The rare earths industry emerges as a "game-changer"—how should investors respond?
The rivalry between China and the US intensifies! The rare earths industry emerges as a "game-changer"—how should investors respond?
US stocks experienced Black Friday last week, with incentives including macro policy uncertainty, US government shutdown events, and more.
Of course, the last straw to crush the camels was Trump's “breaking defense” speech about the Sino-American tariff war. The reason is that the Central Party adopted a rare earth control policy on October 9 to directly restrict exports of rare earths technology, forcing Trump to declare war and collapse US stocks in an instant.
So, how is this rare earth policy different and what impact does it have and what are the opportunities for investors to make money? We will discuss this opportunity with you all.
What happened?
Let's start by figuring out exactly what happened.
On October 9, the Ministry of Commerce of China published the latest decision on the export control of rare earths abroad, which is unprecedented. What is the difference between the specific policy and the past policy?
Horizontal Width Control List
The main control measures are to target the division of soil oxides, metals and primary products directly from primary products to medium-weight soils and high value-added products. With the addition of Metallic, Phosphorus, and its Alloy and Oxide Phosphorus, the engine, compressor-like parts, and part to component controls are controlled from source to application.
LONGITUDINAL EXTENSION CONTROL
It is expressly stipulated that any overseas organization or individual whose downstream products contain rare earth elements originating in China (with a value of more than 0.1%) or use Chinese rare-earth-related technologies in the production process must apply to the Ministry of Commerce of China for traceability and management of the global supply chain。
Full implementation of technical blocking
Integrating core processes into the scope of controls, such as rare earth secondary resource recovery, efficient mine extraction, high-end magnetic material preparation and production line construction are explicitly blocked.
In addition, there are controls for end users and uses, in principle prohibiting use in sensitive areas such as military, and strict phased approval for cutting-edge rare earth materials and technologies such as advanced chips below 14 nm, storage chips above 256 layers and above.
Control Dimension | Past Policy Highlights | New Highlights for October 9, 2025 | Core Differential Analysis |
Controlled Categories | Primary Products of Soil Oxides, Metals and Other Substances | 1. Precision Expanded Metal List: Add Pipeline to 5 Types of Heavy Soil | Precision control of strategic rare-earth and high-value-added products from entry-level products |
coverage | Mainly aimed at export operators and items within China | 1. Introducing the principle of “Chinese ingredients”: as long as the product contains rare earth or technology originating in China, regardless of where it is produced, it is required to export it again from China | Jurisdiction for Global Expansion |
Technical level | Related technologies are listed in the “China Export Restriction Restriction Technology Catalogue” | 1. FULL CHAIN TECHNOLOGY LOCALIZATION: CLEAR CONTROL OF THE FULL PROCESS TECHNOLOGY USED FOR MINING, SMELTING, MAGNETIC FABRICATION TO RECYCLING | Control upgraded from “what is” to “how to do”, core process and technology become control core |
End Users and Uses | In principle prohibited for use in sensitive areas such as military | Pinpoint the “Negative List” and “Case by Case Approval” ranges: | Control more specific, precise and directly related areas of focus for global high-tech industry competition |
In summary, this policy lock is quite extensive, launching a full-scale dead-end attack from products and technologies, after all, it will allow Trump to break through the defenses and see his strength!
So, why is rare earth so important? What is the specific impact of this control policy?
What are the effects?
In fact, in international circles, everyone has their own killers, the United States has chips and China has rare earths.
China has the advantage of a global industry chain that operates globally, including a dual leader in resources and production, accounting for about 70% of global land production, and more than 90% of global quarrying production.
Rare Earth is used as a hidden chip for Chinese and American gambling, and the core factor is crucial to its application scenario.
Light earth (for example, for example, for use in the New energy fund industry (e.g. in electric vehicles and wind turbines, the demand is very wide, compared to the fact that each new energy fund car's electric motor requires 3-5 kg of heavy earth in a magnetic field (e.g., for example, for use in the National Defense Army) Manufacturing and high-end chipsets have little to no alternative key role to play with (Chinese supply is over 90% of the world's supply, and the strategic value is extremely high. In the upcoming XINXINGCHANYE industries, such as Humanoid Robotics, the low space economy, will further push the country's military needs.
Rare earth classification | Main Application Scenarios |
Light thin soil | |
(La) | Piezoelectric materials, hydrogen storage materials, optical glass and catalysts for manufacturing many organic chemical products |
(Ce) | Automotive Glass Additives, Polishing Powders and Automotive Diesel Air Purifiers |
(Pr), neodymium (Nd) | Two types of common use for New energy Fund driving motors, wind generators, etc. |
(Pm) | Fluorescent materials and navigation lights, etc. |
(Sm) | Structural and control materials for cobalt permanent magnets, laser materials, and atomic reactors |
(Eu) | Lenses and LCD displays |
Medium to medium rare earth | |
(Sc) | Alloy Material |
(Y) | Ceramics, Chemicals, Luminescent Materials and Superconductive Alloys |
(Gd) | Nuclear Reactor Inhibitors, etc. |
(Tb) | Airplane Wing Regulator |
Weapon (Dy) | Lighting sources for movies, prints, etc. |
(Ho) | For the manufacture of optical communication devices |
(Er) | For manufacturing fiber amplifiers, laser materials and portable laser rangefinders |
(Tm) | Medical laser for inpatient diagnosis and treatment of tumors |
(Yb) | Additives for computer wing components |
(Lu) | For Energy Battery Manufacturing |
For China: Favoring Rare Earth Taps
For China, the new control policy has strengthened strategic initiative, extending rare earth advantage from the resource level to the technical and regulatory level, greatly enhancing the right to speak in international gambling. In addition, the policy helps to promote industry upgrading, pushing the domestic rare earth industry from exporting primary raw materials to high-end material manufacturing and technical services, and increasing the added value of the overall industry.
According to investors, the concentration of the Land Industry Group will be further increased, benefiting the head of the Land Industry, the country's enterprises with resource allocation and a complete Industry Chain (such as Arctic Land, China Rareearth, China Rareearth, will be more advantageous.
In addition, there is one company on the Hong Kong stock market that is the most important stock to share before the celebration. $JLMAG(06680.HK)$ 。
Gold Power Magnet is a global high performance iron permanent magnet material tap company that mainly engages in the R&D, production and sales of high performance magnetic materials for underground floating magnetic materials and application enterprises. The company's business fundamentals were stable, core business continued to grow, profitability continued to improve, and policy changes added, and the share price jumped 12% in October 13 to reach a new all-time high.
Interested fellow investors can learn the fundamentals and technical aspects of trading analysis of the upper course >>[Speed of Chance] Increased by more than 200%! Does the Golden Force rise to the wind?
For the United States: Rare earth sapling MP is in the spotlight
For the United States, Trump's defensive response has just exposed the vulnerability of the U.S. rare earth supply chain.
A lot of high-end manufacturing and counterinsurgency industries in the United States rely heavily on Chinese materials and technology. This time, the key technical lockdown for the National Defense Forces and Semiconductor Industry is to ensure that the crude oil value ratio, which includes Chinese components, is higher than 0.1%, to be controlled. It does not precisely tap into the chip brands of the United States, and the current technology of overseas enterprises, so that it does not open up the division of China.
Of course, the United States is also in a mad scramble to rebuild the country's rare earth supply chain, as did the US Department of Defense some time ago. $MP Materials(MP.US)$ A large investment led to the purchase of 100% of MPF produced by the new plant within 10 years, and set a base price of $110 per kg for carbon oxides. At present, the MP is not lacking in mineral ores, the separation technology and the extraction of heavy soils, which in the meantime cannot be processed into ferrous iron. With more than 90% of the production of this business in Chinese enterprises, it may take up to a year if MP wants to follow Chinese technology.
Take a look again $MP Materials(MP.US)$ In current production conditions, according to the latest Q2 data in 2025, the quarterly production of soaps (REO) reached 13,145 tonnes, increasing by 45% year-on-year, and the production of nitrous oxide (NDPR) was 597 tonnes, the highest quarterly production in history. Potassium oxides and sulphur oxides are the raw materials for the production of high-performance ferrous magnets, and the other yield is an important step forward in the closure of the entire Industry Chain.
According to the latest news, the US National Defense Fund will expand its reserves of key minerals by US$1 billion, and US$5 billion is expected to be invested in the related mineral supply chain, in order to support the development of other Mineral Industry Chains. This is due to the strong support for the stock market, which is likely to cause a rebound in MP's share price.
In this course, we carefully analyze the development history and detailed business situation of MP. Interested fellow investors can consult here >>Opportunity Fast Party】Can MP Materials Become the Champion Brand of the American Land Industry Chain?
How does the MP post-market work?
For fellow investors interested in US Stock Trade Opportunities, MP is one of the most important stocks in the US Land Industry Chain. Encouraged by China's Rareearth policy, $MP Materials(MP.US)$ It rose 8.37% last Friday, reaching a cumulative increase of 378% year-on-year at the close of trade as of October 10, claiming to be one of the strongest stocks to rise this year!
Will there be a chance to ride in the future? What should investors do?
From a technical point of view, the MP is currently in an uptrend, for this type of Stocks, it is possible to use the EMA12 and 50 trend lines to find a return position in order to provide a safe riding opportunity. For example, currently MP can refer to the EMA50 line position ($66.5) as a Strong Resistance, the stock price near this average line can act as a short period and time, the position or error rate corresponds to the lower EMA50 line of the stock price, and then the EMA12 and EMA50 downwards. This strategy is good for stability, and can help investors stay on the uptrend for longer periods of time.
Good Options Trading Tools are available for motivated fellow investors. If You Continue to Be Bullish $MP Materials(MP.US)$ In a strategic location in the United States Land Industry, due to the rise in the short term, it is possible to choose to Buy calls, such as Small Business, to get higher profits with a small amount of money. However, if you think it is good for MP to buy the stock at a lower price, then you can choose to Sell Put. The good thing about this strategy is that you do not end up buying MP shares, you can get an option money, if the share price drops and exercise rights, you are close to the price you are looking at (Equity) Price: Buy Stocks at a discount.
Now, with more options strategystrategies to choose from, our friendfellowinvestor can click to enter MP's stock and click on to go to MP's quote-page-Quote--options---strategystrategy, to learn more about the methods involved.
Risk Disclosure: This content does not constitute research reports and is for reference only and does not serve as a basis for any investment decisions. The information referred to in this article is not a comprehensive description of the securities, markets or developments described. Although the source of information is considered reliable, the accuracy or completeness of the above is not guaranteed. In addition, the accuracy of any statements, opinions or predictions made in this article is not guaranteed.
