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China Tightens Grip on Rare Earths

China has announced sweeping export controls covering rare-earth technologies, super-hard materials, and high-energy battery inputs, adding an extraterritorial licensing trigger at the 0.1% value threshold for foreign-made items and cutoff for battery cells.

The package comprises measures, including one that immediately restricts exports of rare-earth process know-how (ie. mining, smelting, magnet and recycling technologies and technical data) as it takes effect on Thursday.

The rest of the measures covers super-hard materials, including industrial diamonds, diamond tools and CVD equipment/technology. Another measure puts controls on processing machinery and chemicals for rare-earth extraction and magnet fabrication under license.

You can read more on the matter here.

What’s going on?

• Bank of Canada to Businesses: Get Used to the Turmoil (theDeepDive)

• Budget will include automatic tax filing for low-income Canadians, Carney says (Globe)

• Bessent Approves $20B Argentina Bailout Benefiting Hedge Fund Run by His Friend (theDeepDive)

• Trump threatens ‘massive’ tariffs on China amid critical minerals dispute (FT)

• US Commerce Secretary Pressures Canada Over Alcohol Ban as Trade Tensions Escalate (theDeepDive)

• Canada Will Review Trump Minerals Deals Carefully, Minister Says (Bloomberg)

• Argentina Rates Jump 80% As Treasury Sold Dollars Again (theDeepDive)

• Nobel Peace Prize Awarded to Venezuelan Opposition Leader María Corina Machado (WSJ)

• Carney Floats Keystone XL Revival In Trump Tariffs Talks (theDeepDive)

• Canada–U.S. trade negotiations at critical stage, Carney says (Globe)

• India Leads Global Oil Demand Growth As Consumption Surges (theDeepDive)

What’s the latest?

• Crude Oil: U.S. crude oil prices fell 4.1% to $58.98 per barrel, while Brent dropped 3.7% to $62.78, after threatened higher tariffs on China in response to its new rare earth export controls. The announcement reignited trade tensions and raised fears of slower global growth. Trump said his administration is considering a “massive increase” in tariffs and other countermeasures. Markets reacted negatively, with investors pulling back from risk assets.

• Markets: U.S. stocks tumbled Friday after threatened a “massive increase” in tariffs on , reigniting trade tensions. The S&P 500 fell 1.5%, Dow Jones 1% (−456 points), and Nasdaq 2.2%, marking the sharpest drop since August 1. Levi Strauss plunged 12.3%, while oil prices fell—WTI down 3.6% to $59.27, Brent down 3.3% to $63.08—after an – ceasefire. The 10-year Treasury yield slipped to 4.06%, and markets in and also declined.

• Economy: Canada added 60,000 jobs in September, far surpassing forecasts of 5,000, keeping unemployment steady at 7.1%. Full-time work rose 106,000, while part-time jobs declined. Manufacturing led gains (+28,000), followed by health care and agriculture, with Alberta posting +42,500 jobs, its largest monthly rise outside the pandemic. Economists said the report may prompt the **** to pause further rate cuts after lowering its policy rate to 2.5% in September.

• Trade Wars: Trump said there’s “no reason” to meet Xi Jinping after China restricted rare earth exports vital to U.S. industries. He threatened a “massive increase” in tariffs on Chinese goods, reigniting trade war fears. China’s new export controls target mining and tech materials, including those for military use. Analysts warn the move could end the current tariff truce, heightening risks of renewed U.S.-China economic conflict.

• Politics: U.S. budget chief Russell Vought confirmed that layoffs of federal workers have started amid the ongoing government shutdown, calling them “substantial.” The reductions in force mark the first major cuts since the shutdown began last week. The Trump administration has also frozen billions in funding for Democrat-led states and cities, blaming Democrats for the crisis.

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The stock market and stuff

• Federal Probe Opens Into Tesla’s Full Self-Driving Technology (theDeepDive)

• RBC CEO Urges Canada to Overcome Fear, Secure Trade Deals (theDeepDive)

• Venture Global shares plummet after arbitration loss over LNG cargoes (FT)

• Aura Minerals Reports Q3 Production Of 74,227 Equivalent ounces (theDeepDive)

In the juniors

• Silver Storm Secures US$7.0 Million Offtake Financing Agreement For La Parrilla Restart (theDeepDive)

• Integra Resources Announces Results From Near-Mine Oxide Gold Drilling at Florida Canyon; Initial Dump Volume and Grade Estimates Underscore Near-Term Growth Potential (JMN)

• Baytex Energy Weighs $3B Eagle Ford Exit (theDeepDive)

FULL DISCLOSURE: PTX Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of PTX Metals. The author has been compensated to cover PTX Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.