▼impact 4
China Rare Earth Group in talks to acquire Shenghe Resources, sources say
China Rare Earth Group, a state-owned rare earth giant, is in talks to acquire Shenghe Resources, according to two people familiar with the matter. The talks began this year, and China Rare Earth Group wants to take a controlling stake, the sources said. If a deal is reached, Shenghe's holdings in overseas companies would be transferred, including a 3% stake in US rare earth company MP Materials, which would put China Rare Earth Group in the position of investing in MP, whose largest shareholder is the US Department of Defense. A successful acquisition would bring one of China's last major privately owned rare earth mining and refining companies under China Rare Earth Group, ending a decades-long effort to consolidate the sector under state control. Shenghe acquired Australia's Peak Rare Earths last year. According to one of the sources, a deal would make it easier for Shenghe to secure the quotas the Chinese government uses to manage supply. China Rare Earth Group, Shenghe Resources and China's Ministry of Commerce did not respond to requests for comment.
impact 4
Trump and Xi to discuss trade in Washington, with agriculture, energy and rare earths in focus
US President Donald Trump is set to hold trade talks with Chinese President Xi Jinping in Washington on September 24, with trade in agricultural goods, energy and rare earths among the key issues both sides have used as bargaining chips in the trade war and which are likely to be raised again. On agricultural goods, one of the major US exports to China worth 29 billion dollars in 2024, China agreed to buy 25 million tonnes of soybeans a year from the United States through 2028, according to the White House, and US officials said China also agreed to buy an additional 17 billion dollars of other agricultural products during Trump's visit to Beijing in May. US Trade Representative Jamieson Greer said on September 3 that incentive measures to promote US agricultural sales to China could be announced. On energy, Bloomberg reported on Tuesday, September 15, that energy tariffs could be part of a 30 billion dollar reciprocal tariff reduction package, which was signalled after the May summit but has not yet been implemented. Meanwhile, US energy imports between 2020 and 2024 were worth between 7.5 billion dollars and 12 billion dollars a year. As for rare earths, where China controls production and has restricted exports to the United States, the issue has not been fully resolved. Reuters reported that US officials have demanded China honour its commitment to maintain continuous deliveries of these critical raw materials, and ahead of this summit the United States signalled the possibility of lifting some sanctions while threatening to impose additional ones. Trump said he would consider lifting some sanctions after the visit to Beijing.
impact 4
Xi-Trump Summit to Put AI Rivalry, Tariffs and Yuan in Focus
Artificial intelligence, a lingering trade war and the yuan will likely dominate the agenda of the upcoming US-China summit between US President Donald Trump and Chinese counterpart Xi Jinping, with analysts focused on whether the two nations can reach concessions or put guardrails around key areas of competition. A Goldman Sachs Group Inc. survey shows 46% of offshore and 38% of onshore investors expect Chinese stocks to rise after the talks, while only a small minority foresees losses, though overseas exchange-traded fund flows and options positioning suggest foreign investors remain wary ahead of the summit, according to Tony Lee, JPMorgan Chase & Co.'s equity-derivatives strategist. AI is widely expected to be a central topic, with access to advanced US chips, safety standards and disputes over the pace of the industry's development among key points of contention, while the fate of a soon-to-expire one-year tariff truce, Beijing's export curbs on rare earths and the value of China's currency may also be in the spotlight. Expectations are high that the summit may result in an extension of the bilateral trade truce that will expire in November, after the two nations have started talks over slashing tariffs on certain goods, including American energy and agricultural shipments, as well as lower duties on Chinese inputs for manufacturers. The yuan may also be discussed, especially after US Treasury Secretary Scott Bessent said in August that many people considered the Chinese currency undervalued; the yuan has strengthened around 4% against the dollar this year, making itself Asia's top performer.
