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China’s Commerce Ministry said on Thursday that the country will tighten rules on rare earth exports. Foreign businesses and individuals must obtain a dual-use items export license for rare earth exports.

On Thursday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1102 compared to 7.1055 before the long holiday and 7.1484 Reuters estimate.

The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.

In Open market operations (OMOs) the PBOC inject 612bn yuan at an unchanged rate of 1.4%

• after accounting for maturities today it’s a 1451.3bn yuan drain

This article was written by Eamonn Sheridan at investinglive.com.

China tightens rare-earth export rules, imposes new dual-use licensing from December 1

China has announced sweeping new restrictions on rare-earth exports, requiring both foreign and domestic companies to obtain special licences for items with potential military applications, in a move that underscores tightening controls over materials critical to global technology and defence supply chains.

The Ministry of Commerce said that from December 1, foreign firms and individuals seeking to export rare-earth products classified as “dual-use items” — materials with both civilian and military applications — must first secure a dual-use items export licence. Domestic exporters will also be required to declare the final destination country or region of shipments.

In addition, the ministry said exports related to the design, development, production or use of weapons of mass destruction will not be approved, with that restriction taking immediate effect. Export applications to overseas military users and to importers or end-users on official watchlists will also be rejected in principle.

The announcement comes amid heightened geopolitical competition over control of critical minerals used in semiconductors, electric vehicles, magnets, and advanced defence systems. China dominates global rare-earth production and has in recent years used export curbs as leverage in technology and trade disputes.

Analysts said the latest measures could further strain supply chains and accelerate efforts by the U.S., Japan, and Europe to diversify sourcing and processing capacity for rare-earth elements.

More:

• Some items cannot be exported without approval
• These include technologies and carriers related to rare earth mining, smelting and separation, metal smelting, magnetic manufacturing, and recycling of rare earth secondary resources
• Chinese citizens, organizations shall not, without permission, provide any substantive assistance and support for overseas rare earth mining, smelting separation, metal smelting, magnet manufacturing

This article was written by Eamonn Sheridan at investinglive.com.

The S&P 500 and Nasdaq Composite scored new intraday and closing highs Wednesday stateside.