Profits of Rare Earth Sees Skyrocketing
- Category: tungsten’s News
- Published on Wednesday, 24 July 2019 09:57
A Chinese company specializing in tungsten products and rare earths reported a sharp drop in overall profits last Monday, but profits in its rare earth business soared as metals necessary for high-tech products became hot commodities amid trade tensions.
According to media reports, Chinese regulators have begun to restrict imports of rare earths from Myanmar in recent weeks as part of an effort to tackle the problem of oversupply in domestic industries.
The news was hailed by domestic rare earth companies, whose share prices soared. In the competition for trade and technology with the United States, companies also benefit from government support for strategic industries.
Following calls by top leaders to upgrade China's rare earth industry, central and local government officials quickly took measures to promote innovation and research and development in the industry.
This is also because the officials said that they might restrict China's rare earth exports to the United States in retaliation for the latter's malicious attempt to curb China's economic and technological development.
China is the largest rare earth producer in the world, accounting for more than 85 percent of the world’s total output. High-technology companies in the US rely on Chinese rare earths to make products such as semiconductors and fighter jets.
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