Updated: Jan 31
According to SMM news,
The 22nd session of the Standing Committee of the 13th National People's Congress formally adopted the Export Control Law (official draft) on October 17.The law includes five chapters, including general principles, control policies, lists and measures, supervision and management, legal responsibilities and supplementary provisions, totaling 49 articles. It will come into effect on December 1, 2020. In addition to traditional dual-use items, military products and nuclear products, other "goods, technologies, services" related to the maintenance of national security and interests and the performance of international obligations such as non-proliferation are also included in the scope of control.
Rare earth elements are one of the most strategic components present in several key items for renewable energies, nuclear technologies and defense. In addition these elements play a key role for mechanical efficiency in infrastructures (reducing the amount of steel and as such CO2 emissions). EV's engine are also depend on Rare earth permanent magnets.
We can understand that China will adapt new policies to put pressure on any foreign trade that may interpreted as counter ambitions to China interests.
Are we going some similarities with the past situation in 2010-2011?
Hereafter the Rare Earth Elements Fund performance chart. Any strong policy and its application from China limiting the REE exports will have a very significant effect on the market. To date and according to SMM surveys, companies have not received relevant notices yet.