Global stock markets lost $2 trillion in May

Global stock markets lost $2 trillion in May

And if China actually does put a rare earths ban into place, Trump would certainly be facing his biggest obstacle yet.

Steven Schwinn, a professor at John Marshall Law School in Chicago, suggested that Huawei's arguments fall short constitutionally, and "given that this relates to national security, we can expect the courts to be fairly deferential to the government".

Senior Chinese academics and officials yesterday said the U.S. would come to rue its decision to fight a trade war with China.

Following the Trump administration's blacklisting of Huawei Technologies Co., President Xi and China could now consider halting the exports of rare-earth materials to the United States. China produces about 80 percent of the world's rare earths and an even higher proportion of the elements in their processed forms.

These statements follow President Xi Jinping's noteworthy visit to a rare earth processing plant last week-something that had already been interpreted as an implicit threat just after the U.S. threats against Huawei.

Lynas is the largest rare earths producer outside of China.

That in turn has triggered renewed interest in rare earth companies such as Avalon, which emerged once again on Friday as the most active stock on the TSX with trading volume of 7.4 million. It matters a great deal to individual companies but is minuscule in the global economy.

Rare earths are also used as catalysts and phosphors that, in turn, are utilised to control air pollution, illuminated screens on electronic devices and polishing of optical-quality glass, among others, which are among the verticals that are experiencing higher demand.

The Chinese have been importing far fewer agricultural products from the U.S., which has left USA farmers in a lurch.

But analysts say China may be reluctant to target the materials because it could hasten a global search for alternative supplies of rare earths.

Mr Dong Yang, a former executive director at the China Association of Automotive Manufacturers, said at the seminar that U.S. auto parts suppliers will also be hard hit if the trade war continues and that competitors from Germany, Japan, South Korea and France can provide strong substitutes to serve the Chinese market.

That was intentional: In the late '90s, China ramped up its production capacity of rare earth metals, while the US and other countries wound down their production. Since 2004, China has supplied about 80 percent of USA rare earth imports, prompting the Defense Department to raise concerns about that dependence.

Faced with Trump, China's official political leaders now threaten the threat of a reduction in rare earth exports to the United States - which could deprive Washington of a crucial resource for high-tech. Chinese oxides would still reach Americans.

For years, the USA government's Critical Materials Institute (CMI) and private sector players have explored strategies for recovering rare earths from electronics. There is still more news to digest before traders can put this hard month behind them. But non-Chinese mines are not starting from scratch today.

What are the Rare Earth New Material market opportunities and threats faced by the vendors in the global Rare Earth New Material Industry? But that is the sort of inefficiency created in global markets whenever governments intervene.

Trump is going all out here.

LYNAS and Blue Line have signed a memorandum of understanding (MoU) for a joint venture (JV) to develop rare earths separation capacity in the US. However, the USA could adapt and start its own production or look for alternatives in the medium term.

Trump, who has called himself "Tariff Man", warned that the tariff will increase until "the illegal immigration problem is remedied".

Despite their name, most rare earth elements aren't exactly "rare".

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