China just sent another jolt through global markets - and this one hit right at the heart of America’s future innovations and defense ambitions.
On Wednesday, China announced a fresh round of export restrictions on rare earth elements - the obscure but essential metals that go into everything from electric vehicles and wind turbines to fighter jets and smartphones.
These new controls don’t just tighten the screws a little. They expand China’s grip in three key ways:
Five more rare earths have been added to the restricted list, bringing the total to a dozen.
China is cracking down on the machinery and refining equipment needed to process these metals.
And for the first time, even foreign companies using Chinese materials or technology will need Beijing’s approval to ship certain rare earth products abroad.
Think about that. A company in the U.S. or Europe could now need permission from China just to export a magnet or component that was made with a Chinese input somewhere along the supply chain.
That’s not just red tape - it’s leverage. And it’s coming at a time when global tensions are already high.
China controls roughly 90% of global rare earth processing, giving it enormous influence over industries from batteries to semiconductors. With one policy change, it reminded the world that supply chains remain one of its most powerful weapons.
Chinese rare-earth stocks jumped as much as 10% on the news - but this story isn’t about short-term trading. It’s about a massive long-term shift toward resource independence.
America’s Response - and the Opportunity Ahead
The U.S. has already started to fight back. Executive Order 14285, signed earlier this year, jump-started new investment in mining, refining, and alternative sources of critical materials. But rebuilding a full supply chain takes years - and in the meantime, prices for these materials could soar.
That’s why I believe this is the early stage of what I call the “New Gold Rush” - the race for resource independence. Investors who identify the right companies now could be positioned for outsized gains in the years ahead.
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Stocks to Watch
As I mentioned above, the China-based rare earth suppliers were up big after the announcement. Some of the larger names that trade overseas include China Northern Rare Earth Group and Shenghe Resources.
In the U.S., where the government is already pushing for more independence from China there are a few names to watch. First is MP Materials (MP) – a stock I have mentioned many times in the past. The U.S. government recently took a stake in the largest rare earth company based in the U.S.
Mountain Pass mine and processing facility, California
A few smaller players that have been on the move lately (but are highly risky) include NioCorp Development (NB), USA Rare Earth (USAR), and Critical Metals (CRML).
Then there are even more obscure and highly speculative stocks that trade in Canada that have been soaring in price: Ucore Rare Metals, Mkango Resources, and Aclara Resources.
None of the stocks above are recommendations. The names intended to educate you about a sector that most of Wall Street continues to ignore.
The bottom line: China’s latest move isn’t just a trade tactic - it’s a wake-up call. The future of energy, defense, and technology depends on securing these critical materials. And the companies stepping up to solve that problem could be some of the biggest winners of the next decade.
Here’s to the future,
Matt McCall
Editor, Market Insights
