China and Precious Metals

(Restrictions Threatening Global Industries)

⚠️ China has recently expanded its restrictions on the export of precious metals, especially those used in the production of electric vehicles, aircraft, and giant wind turbines.

⚠️ The restrictions include 7 rare metals and high-performance magnets used for military applications and advanced industries.

⚠️ The most threatened sector is the electric vehicle industry outside of China, as the global stock of magnets will run out within 3 months if China does not lift the restrictions.

⚠️ The restrictions include government approval for every shipment leaving China to any country with a commitment not to re-export to the United States.

⚠️ Chinese car companies have declared a (force majeure) and withdrawn all metals from Chinese markets and stored them.

✔️ Some countries have started looking outside of China to import these metals, such as Japan, which immediately agreed with Australian and Malaysian companies to supply the required metals.

⚡️ In summary: If the countries supporting Trump's decisions succeed in building new supply chains, they will deliver a knockout blow to China; if they do not succeed, China will soon control the final decision.