Why China's Ban Gave a Boost to MP Materials and USA Rare Earth
China's export ban to the two companies shows they are seen as a threat to that country's rare-earth dominance.
Why China's Ban Gave a Boost to MP Materials and USA Rare Earth
Overview
On June 22, China added 10 U.S. companies to its export-control list, including rare-earth mining companies MP Materials (NYSE: MP) and USA Rare Earth (NASDAQ: USAR). Both stocks are up over the past five days, despite the news.
The restrictions are designed to stop dual-use item exports from China from reaching the companies. While the news appears negative on its face, the market often interprets these actions as a long-term validation of the companies' strategic importance and a catalyst for increased domestic government support.
Here are two reasons why the two mining stocks are climbing, and one reason to be cautious.
Details
Source
Originally published at www.fool.com.
