By Tracy Qu
Shares of Chinese rare-earth producers jumped, after Beijing said it is seeking to tighten controls on production of the minerals used in everything from cars to defense equipment.
Major industry players, which stand to benefit the most from the proposed changes, led gains. China Rare Earth Nonferrous Metals shares closed 8.9% higher on Wednesday, while JL Mag Rare-Earth added 8.1%. Shares of both China Rare Earth Holdings and Shenghe Resources hit the 10% daily trading limit in mainland China.
China's Ministry of Industry and Information Technology said it plans to implement fines on unauthorized production and quota violations.
If a company exceeds the production quota by more than 30%, they might face a fine of up to 10 times their illegal gains, the ministry said late Tuesday.
Beijing will also scrutinize companies that fail to truthfully record the flow of rare-earth products and producers that refuse or obstruct government inspections, the ministry said.
The ministry is seeking public opinion on the proposed guidelines until the end of May.
Rare earths sit at the heart of the U.S.-China tech rivalry. Since the 1990s, China has systematically built and maintained its dominance in rare-earth minerals, which are essential for various high-tech products.
Beijing has supported major Chinese rare-earth companies financially, and passed laws preventing foreign companies from buying rare-earth mines in China. The sector remains a key topic for the coming meeting between Chinese leader Xi Jinping and President Trump.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
04-29-26 0420ET
