The Japanese government is planning to spend Y166 billion on 160 projects to reduce the companies reliance on Chinese rare earths, as well as to advance certain global projects which in the long run would reduce its reliance upon China as a supplier of rare earths.
The biggest beneficiary of China's curtailment of rare earth exports is Lynas Corporation, the ASX-listed company. If I was a Chinese regulator, I would be investigating the share register of Lynas Corporation to see if there are any Chinese shareholders engaging in insider trading, as its so easy to profit by trading in a third-party jurisdiction from actions taken in another. This is why regulation is mere rhetoric. The auhorities are so far behind the times. I laugh when the authorities were monitoring share trading of executives on the main exchanges, whilst people were no doubt trading in 'derivative exchanges', i.e. Contracts for difference. One does not even have to trade the exact same security, just a security which is related to it. i.e. Rare earths is to Lynas what the 3mths platinum contract is to the spot platinum price. Just find a causal correlation and you can profit.
