A major producer of rare earth resources

       The attributes of China's resource-consuming countries are too strong, and the attributes of resource-producing countries are often neglected. China is a country with vast territory and abundant resources. It is the world's leading mineral resource. The reserves and output of lead, zinc, tin, gallium, bismuth, rare earth, tungsten and molybdenum rank first in the world. According to the data of USGS, the global tungsten reserves in 2018 are 3.3 million tons, of which 1.9 million tons are in China, and 82,000 tons in 2018, of which 67,000 tons are in China. From 2014 to 2017, China was the main source of tungsten imports in the United States, accounting for 32% of the total imports.



In 2018, the global reserves of molybdenum resources were 17 million tons, of which 8.3 million tons were in China. In 2018, the global reserves of molybdenum resources were 300,000 tons, of which 130,000 tons were in China. In 2018, the global reserves of rare earth resources were 120 million tons, of which 44 million tons were in China; in 2018, the global reserves of rare earth resources were 170,000 tons, of which 120,000 tons were in China (production quota excluding undocumented production). From 2014 to 2017, China was the major importer of rare earth products in the United States, accounting for 80% of its total imports.



Industry insiders pointed out that rare earth, tungsten, antimony, germanium, indium are strong varieties of small metals in China, which have a huge impact on global supply. These advantages of small varieties are indispensable raw materials for machinery, electronics, military, construction and other industries. First of all, we can guarantee the security of domestic supply. If global free trade is challenged more, China's strong small metals are also expected to become a deterrent or countermeasure.

At present, the international free trade order is being challenged by a few countries, and trade barriers between economies may be strengthened as a result. In this context, the value of superior resources is highlighted, the market confidence in China's strong industries is expected to continue to increase, and the valuation premium for related companies is expected to gradually reflect.