Edward Conard

Top Ten New York Times Bestselling Author

  • “There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “Unintended Consequences should be read by anyone who takes for granted the superiority of progressive taxation and has not thought carefully about the trade-offs involved.” - The New Republic
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
  • “Unintended Consequences represents the most cogent and persuasive analysis of the Financial Crisis to date.” - Andrei Shleifer, 1999 John Bates Clark Medal Winner
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “A full-throated defense of economic dynamism.” - The Wall Street Journal
Upside of Inequality Oxford Unintended Consequences

AI Summary. China expanded its rare earth export controls to require licenses for any product containing more than 0.1% by value of Chinese rare earths or made with equipment containing them, with a presumption of denial for military uses and scrutiny of advanced semiconductor uses. Aggressive enforcement would affect industries from chips and autos to aerospace, defense and medical equipment.

Michael Cembalest JP Morgan
Date Posted:
Is Database:
Database

The US imports 80 to 100% of critical minerals, of which 50 to 100% come from China. If new Chinese controls on mineral exports remain in place, Cembalest argues, “the eventual impact on US military, industrial and renewable energy output would be huge.”

How far do China's expanded rare earth export controls reach?

Core argument: China requires export licenses for any product containing more than 0.1% in value of Chinese rare earths, or made using equipment containing Chinese rare earths or related magnets.

China broadened the scope of its rare earth export controls to require licenses for any product containing more than 0.1% in value of Chinese rare earths, or manufactured using equipment containing Chinese rare earths or related magnets. The regulations include a presumption of denial for military end-uses and close scrutiny on uses related to high-end semiconductor production. The new rules expand the number of specific rare earth minerals covered and also limit the export of rare earth mining and manufacturing equipment from China. China's new rare earth rules match what the US has imposed for high end chips and semiconductor production equipment: a "foreign direct product rule" that controls not only direct exports of a targeted product, but other countries' exports that embed that product. If these controls are aggressively implemented by China, the impacts would be felt in semiconductor, automotive, consumer electronics, aerospace, defense, robotics, medical imaging, medical equipment and telecommunications industries.

Takeaways by Macro Roundup® AI

  1. China requires export licenses for any product containing more than 0.1% in value of Chinese rare earths, or made using equipment containing Chinese rare earths or related magnets.
  2. China's rules carry a presumption of denial for military end-uses and close scrutiny of uses tied to high-end semiconductor production, while expanding the list of covered rare earth minerals and limiting exports of rare earth mining and manufacturing equipment.
  3. China's rare earth rules match the US "foreign direct product rule" for high-end chips and semiconductor production equipment, and aggressive implementation would affect semiconductor, automotive, consumer electronics, aerospace, defense, robotics, medical imaging, medical equipment and telecommunications industries.

Related Articles:

  • China Cracks Down On Foreign Companies Stockpiling Rare Earths — China is warning foreign buyers of rare earths and derived products such as magnets that building large inventories will bring supply restrictions, and is limiting approved export volumes to prevent stockpiling, according to people familiar with the matter.
  • China’s Weaponisation of Rare Earths is a New Kind of Trade War — China's export controls on rare earth materials and magnets threatened to halt production across the auto industry, the largest manufacturing sector in most advanced economies, and forced Washington to negotiate on tariffs. Despite China's well-known dominance of rare earth production, Western governments and companies have not developed alternative suppliers.
  • Pentagon Steps Up Stockpiling Of Critical Minerals With $1bn Buying Spree — The US Defense Logistics Agency has signaled plans to buy up to $500m of cobalt, $245m of antimony, $100m of tantalum and a combined $45m of scandium for its critical minerals stockpile, valued at $1.3bn. Stockpiled materials can be released only by the president in declared war or when deemed necessary for national defense.
Showing 91 database articles primarily about China