With much of the western world locked down as coronavirus cases increase, we decided to take a look at our bug out options, and we found one in particular: a flight from Toronto to Wuhan via Beijing.
China’s state-backed blockchain alliances features big cryptocurrency and financial companies. One of the first name brands to join the ‘Blockchain Services Network Alliance’ (BSN) is Huobi China.
Huobi China, which is a part of global bitcoin and crypto exchange conglomerate Huobi Group, revealed its participation at the Blockchain Service Network Partner Conference.
The company’s Chinese-based operations do not include the trading of cryptocurrency. “It is not an exchange. It is a fully compliant legal entity in China doing blockchain education and blockchain solutions for large corporations, solely focused on blockchain technology, said Ciara Sun, chief of staff of Huobi Group. Read More
Beijing and Washington won’t be reducing some punitive tariffs on each other’s goods – at least according to the Trump White House. Talks on the trade war, it would seem, are not progressing as promisingly as reports indicated.
Reports surfaced that a new agreement originated during discussions to iron out a “Phase 1” deal between the two countries. A “phased cancellation” of tariff hikes were agreed to in the event of progressing trade talks, according to the Commerce Ministry spokesman, Gao Feng. Read More
China’s National Development and Reform Commission (NDRC) has removed crypto mining activities as an unwanted industry from its Industrial Structure Adjustment Guidance Catalog.
China has long been a mining leader in the crypto industry. As a world leader in computer hardware generally, the country was in a unique position to take lead the way when it came to mining bitcoin and other cryptocurrencies. As in most hardware-intensive industries, the lion’s share of cryptocurrency mining hardware comes from China. Read More
One Country, One System?
China could change its “one country, two systems” arrangement that has been in place since 1997. The agreement stipulates that the United States is legally bound to treat Hong Kong separately from mainland China for matters concerning trade and economic policy. With troops from the mainland at the border of Hong Kong, the protests and trade war could escalate. Read More
Beijing is threatening to cut Washington off from rare earth minerals, according to media reports in China’s papers that included quotes from the state planning agency. The stocks of rare earth producers were up following the news.
One newspaper included the Chinese phrase “don’t say I didn’t warn you”, which the country used before it went to war with India. The paper wrote “those familiar with Chinese diplomatic language know the weight of this phrase.” The language, which appeared in the Global Times, a newspaper affiliated with the Communist Party, was also employed ahead of conflict between China and Vietnam in 1979.
The People’s Daily made it clear China would use the elements as retaliation in its trade war. 80% of U.S. rare earth supplies come from China.
The editor-in-chief of the Global Times tweeted that China is “seriously” weighing the restriction of rare earth exports to the U.S. and could also implement countermeasures.
A National Development & Reform Commission official told CCTV that people in the country won’t be happy to see products made as exported rare earths are being used to suppress China’s development. Editorials in the Global Times and Shanghai Securities News took similar stances in their Wednesday editions.
The U.S. is dependent on importing rare earth minerals from China, which are used in electronics, hybrid vehicles, and energy storage systems. The U.S. imports the rare earth materials because it’s cheaper than producing them domestically.
This is driving rare earth stocks up with the help of President Xi Jinping, who visited a plant earlier this month along with his chief trade negotiator with the U.S.
China already raised tariffs on America’s sole producer of rare earths from 10% to 25%. The U.S., however, excluded rare earths from its list of prospective tariffs on roughly $300 billion in Chinese goods.
In December 2017, U.S. President Donald Trump signed an executive order to reduce the country’s dependence on external sources of critical minerals, including rare earths, which was aimed at reducing U.S. vulnerability to supply disruptions.
China’s rare earth market:
- China Northern Rare Earth Group
- Minmetals Rare Earth Co.
- Xiamen Tungsten Co.
- Chinalco Rare Earth & Metals Co.
Shares of JL Mag Rare-Earth increased by 10% while Innuovo Technology increased by 9.95%. The shares of Australia rare earth miner Lynas also increased by more than 10%.
“We’ve been here before,” Fraser Howie, an independent analyst, told CNBC’s “Street Signs” on Wednesday. China banned the export of rare earth minerals to Japan after Tokyo detained a Chinese fishing trawler captain.
Norway’s exports of salmon plummeted after Beijing curbed them. That move was seen as retaliation to a Norwegian committee’s decision in 2010 to award a Chinese dissident the Nobel Prize.