SMM5 22 month news: the recent rare earth fire.
On the 20th, General Secretary Xi Jinping went to Jiangxi for investigation and investigation. The first stop came to Jiangxi Jinli permanent Magnet Science and Technology Co., Ltd., which is located in Ganzhou City, to learn about the production and operation of enterprises and the development of rare earth industry in Ganzhou City.
On the 21st, Hong Kong stocks of Chinese rare earths soared 108%, A shares of rare earths plate also rose by a large area, the market value of the main plate increased by 39.5 billion.
As early as 1992, when Deng Xiaoping visited Jiangxi to the south, he said: "there is oil in the Middle East and rare earths in China." It can be seen that the importance of rare earths to China is self-evident. According to the US Bureau of Statistics, China has 55 million tons of rare earth reserves, accounting for 40 per cent of the world's reserves, and exports account for nearly 90 per cent. It can be said that China has an absolute monopoly on rare earth resources.
At a time when trade frictions between China and the United States are escalating, rare earths are not only an important resource for China, but also one of the important means to contain the United States. This is because, as a non-renewable resource, rare earths are widely used, especially in high-tech fields. At present, almost all high-tech weapons have rare earths, and rare earth materials are often located in the core of high-tech weapons. As a large high-tech country, the United States is very dependent on rare earths. Therefore, Jin Canrong, a professor at the School of International Relations at Renmin University of China, said that China has three trump cards to play with the United States in trade wars, two "little kings" and one "great king." The first is a total ban on exports of rare earths to the United States. He pointed out that the quality of China's rare earth industry is very good, and other countries also have rare earths, but the mining industry is not as good as China's, the output is low, the quality is poor, and the environmental pollution is more serious than China, so it has been crushed by China. If China completely bans the export of rare earths (to the United States), many things in the United States will not be made, which will force the United States to mine its own rare earths, but this will not take immediate effect. The demand is too large, and it will take several years for the amount of mining to meet the demand. There's a gap in the middle. When the supply of rare earths in the United States is fully restored and China's high-end chips are finished, they can all be exported.
This may be the cause of the rare earth fire, and rare earths will become a strategic means of attacking the United States in the future. As a matter of fact, Chinese rare earths are not high-quality stocks. They have lost money year after year. The share price has been below HK $1 for many years in a row. The stocks that were forced to delist in the United States were actually able to double yesterday. This is really unthinkable. But in terms of national strategy, it is not surprising.
