What did Donald Trump whisper into the Chinese president\u2019s ear? This question has been puzzling the world since the meeting between the U.S. president and Xi Jinping. At the end of October, the two leaders met in South Korea - images of their handshake show Trump leaning in to speak to his counterpart. Even lip readers have tried to decipher the scene, but the message remains a mystery. What is certain, however, is that this first face-to-face encounter between the two heads of state since 2019 has led to a relaxation of tensions in the U.S. - China trade dispute. Among other things, Xi agreed to suspend the tightened export controls on rare earths for one year. As recently as early October, Beijing had made those regulations stricter, fueling fears of new supply shortages. Rare earths are indispensable for a wide range of products, including smartphones, televisions, and electric motors.<\/p>\n\n
Unsurprisingly, this political back-and-forth has not left the shares of companies in the sector unaffected - particularly MP Materials. Over the past month, the U.S. mining company\u2019s stock has shown a volatility of about 85%. When tensions between the U.S. and China escalated in early October, the small cap\u2019s price initially surged by nearly half, reaching around USD 100. After the Trump\u2013Xi meeting, however, the stock fell back and is currently trading at below USD 60. These short-term swings are unlikely to change MP Materials\u2019 strategic importance for the U.S. government. Washington is seeking greater independence from China in the supply of rare earths. The company\u2019s Mountain Pass mine in California holds an estimated 1.9 million tons of rare earth oxides - one of the richest deposits in the world and the largest of its kind in the Western Hemisphere.<\/p>\n\n