Highlights

• JL Mag Rare-Earth and other Chinese rare-earth companies saw significant stock gains after receiving export permits to U.S. and global markets.
• Beijing's approval of rare-earth export applications suggests a potential softening of the ongoing trade standoff with Washington.
• Morgan Stanley notes that China's control of the rare-earth supply chain remains a strategic bargaining tool in international trade negotiations.

Chinese rare-earth stocks surged on June 11, 2025, following signs of easing tensions between Beijing and Washington. JL Mag Rare-Earth, a leading magnet manufacturer, jumped 7.9% in Shenzhen and 1.75% in Hong Kong after announcing it had received export permits to ship products to the U.S., Europe, and Southeast Asia. The move came after Beijing confirmed approvals of select rare-earth export applications over the weekend.

The development has fueled optimism that the ongoing trade standoff, centered in part on U.S. tariffs and China’s retaliatory controls on rare-earth exports, may be softening. Rare earths, critical for electronics, electric vehicles (EVs), and defense, have become a geopolitical flashpoint due to China’s near-total dominance over the supply chain.

Other rare-earth stocks also saw gains: China Rare Earth Holdings rose 18% in Hong Kong, and China Northern Rare Earth climbed 3.4%. U.S. officials have signaled optimism that rare-earth access issues will be resolved soon as part of broader trade negotiations.

According to Morgan Stanley, China’s control of the rare-earth supply chain ensures the sector remains a powerful bargaining tool in future trade talks. Supporting this trend, Chinese customs data showed a 23% rise in rare-earth exports in May, nearly rebounding to March levels.

—Source: Dow Jones Newswires / Jiahui Huang