Matt Green, mining/crushing supervisor at MP Materials, displays crushed ore before it is sent to the mill at the MP Materials rare earth mine in Mountain Pass, California, U.S. January 30, 2020. Picture taken January 30, 2020.
Steve Marcus | Reuters
In the 1984 science fiction film Dune, Baron Vladimir Harkonnen uttered the famous quote that can aptly be used to describe rare earth metals: “He who controls the spice, controls the universe.”
The spice was central to the Dune universe, allowing trade to flourish and planets to prosper. In the same way, rare earth metals seem to be the spice today.
These metals are used in almost every electronic device, from smartphones and cars, to ballistic missiles.
In a sweeping move Thursday, China has tightened export rules on these critical materials, asserting dominance over the global tech supply chain.
The new measures mean companies need to apply for a licence from Beijing to export any products containing Chinese-sourced rare earth metals, while companies tied to foreign militaries or placed on export-control or watch lists will be denied permits.
China accounts for about 70% of the global supply and has repeatedly used critical minerals as a bargaining chip in trade discussions.
With a potential Trump-Xi meeting in South Korea soon, Beijing may be signalling its leverage ahead of high-stakes talks by tightening control over rare earth exports, and sending a message to the world that in the race for tech supremacy, it holds the high ground.
— CNBC’s Anniek Bao contributed to this report.
What you need to know today
China tightens rare earth exports… China has tightened export controls on rare earths and related technologies while barring its citizens from participating in unauthorized mining overseas. The latest restrictions came just weeks before a potential meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping.
… sending rare earth stocks surging. U.S. rare earth and critical mineral miners surged Thursday after China tightened restrictions on exports, fueling market speculation that the Trump administration will move more aggressively to invest in building out a domestic supply chain.
Ferrari hits the brakes. Shares of Ferrari posted their worst trading day ever Thursday after the luxury carmaker’s full-year and 2030 guidance fell short of expectations, and it scaled back its electrification ambitions.
S&P 500 and Nasdaq retreat. Both indexes took a breather from their all time highs Thursday stateside, dipping 0.28% and 0.08%, respectively. Investors were eyeing the latest developments of the government shutdown, which entered its ninth day Thursday. Over in Europe, the pan-European Stoxx 600 ended Thursday down 0.43%.
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And finally…
Google’s former CEO Eric Schmidt spoke at the Sifted Summit on Wednesday 8, October.
Bloomberg | Bloomberg | Getty Images
Ex-Google CEO Eric Schmidt warns AI models can be hacked: ‘They learn how to kill someone’
Google’s former CEO Eric Schmidt has issued a stark reminder about the dangers of AI and how susceptible it is to being hacked.
Schmidt, who served as Google’s chief executive from 2001 to 2011, warned about “the bad stuff that AI can do,” when asked whether AI is more destructive than nuclear weapons during a fireside chat at the Sifted Summit.
“There’s evidence that you can take models, closed or open, and you can hack them to remove their guardrails. So in the course of their training, they learn a lot of things. A bad example would be they learn how to kill someone,” Schmidt said.
— Sawdah Bhaimiya