Despite geopolitical tensions, China’s rare earth producers have profitable first half
China’s rare earth producers have reported or anticipated hefty first-half profits, with Beijing’s use of the strategically critical minerals as leverage in trade relations with Japan and the United States not appearing to impede normal activity. The geopolitical factor – US President Donald Trump announced more than US$2 billion of domestic mining investment on Friday, widely viewed as…
China's rare earth producers have posted strong first-half profits, despite geopolitical tensions between the US and China. The strategic importance of rare earth minerals has helped maintain high prices and investor valuations. US President Donald Trump allocated over US$2 billion for domestic mining investment to diversify away from China's monopoly.
Chinese firms such as Shenzhen-listed China Rare Earth Resources and Technology and Shanghai-listed China Northern Rare Earth Group reported significant profit growth. The price-to-earnings ratio for Chinese rare earth firms remains high compared to the market average. Analysts believe that geopolitical pressure and US measures have not significantly impacted Chinese producers' earnings in the short term, as they maintain advantages beyond mining.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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