Blog

  • China’s Rare-Earth Controls Send Shockwaves Through Global Supply Chains

    China’s Rare-Earth Controls Send Shockwaves Through Global Supply Chains

    The Takeaway

    On October 9, Beijing unveiled sweeping new export controls on rare earths and related technologies, marking a major escalation in its use of critical minerals as a geopolitical tool. The move tightens China’s grip on the supply chains that underpin global defence and advanced manufacturing. 

    In response, the U.S. and its allies — including Canada — are accelerating efforts to diversify supply, while acknowledging that rebuilding capacity elsewhere will be slow, costly, and uncertain. As both sides harden their positions, the U.S.–China tech and trade confrontation is poised to persist. 
     

    In Brief

    • Rare earths are vital to a wide range of products, ranging from smartphones and electric vehicles to wind turbines and missile guidance systems. In 2024, China accounted for at least 60 per cent of the world’s total rare earth production and processed nearly 90 per cent of the world’s supply.
       
    • Beijing’s new curbs expand restrictions to five additional rare-earth metals, on top of the seven announced in April, now covering nearly all of the recognized 17 rare-earth elements. 
    • Under the new rule, foreign companies, even if no Chinese parties involved, must secure Beijing’s approval to export goods containing 0.1 per cent or more by value of certain Chinese-sourced rare earths, or products made using China’s rare earth-related technologies.
       
    • Beijing will not allow the export of rare earth materials used in the defence sector, citing concerns over dual-use technologies. Case-by-case approval will also be required for exports involving rare earths used in highly advanced technologies, such as semiconductor equipment and artificial intelligence with potential military applications.
       
    • Responding to Beijing’s latest curbs, U.S. President Donald Trump announced an additional 100 per cent tariff on Chinese goods and new export controls on “any and all critical software,” effective November 1, after accusing China of taking an “extraordinarily aggressive” stance on trade and holding the world “captive.”

     

    Implications

    The new regulations mark a sharp escalation in Beijing’s willingness to weaponize its dominance in rare earths. Mirroring Washington’s semiconductor export bans, which restrict foreign chipmakers from selling products to China if they are made with U.S. technology, Beijing has, for the first time, extended its export restrictions to producers outside China. Compared with the April measures that focused mainly on upstream raw materials, the new rules broadened to cover midstream and downstream manufacturing materials and technologies.

    For foreign companies reliant on Chinese machinery, components, or technical know-how, the fallout could be severe. Even firms that already possess Chinese-made equipment risk losing access to maintenance services or spare parts, jeopardizing production continuity. Over the past two decades, China has entrenched its dominance in the sector, supplying nearly all the precision machinery and technical expertise required for rare earth processing worldwide. This new legal tool allows Beijing to constrain Western efforts to build self-sufficient and resilient rare earth supply chains.

    China’s latest move poses major challenges for the West’s advanced manufacturing sector — particularly in defence and semiconductors. Rare earths are critical to defence technologies such as fighter jets, missiles, and radar systems. The U.S. still relies on China for about 70 per cent of its rare earth supply. With Beijing’s outright ban on rare earth exports for military use, analysts warn that the U.S. defence industry could take a major hit, hindering Washington’s ability to keep pace with China’s rapidly expanding defence production, which is reportedly scaling up five to six times faster than the U.S.’s own production.

    The case-by-case review process also hands Beijing a regulatory lever over global supply chains. Technology manufacturers seeking to use Chinese materials and technology must now disclose who will use them and for what purpose, giving Beijing greater power to withhold or condition approvals. This mechanism adds a layer of strategic intelligence and supply-chain control for chipmakers globally, especially those in Japan, South Korea, and Taiwan. If enforced aggressively, the new rule could delay production of some advanced chips by three to six months, according to industry estimates.

    What’s Next

    1. The U.S.–China tit-for-tat trudges along
    Since U.S.–China trade talks in Madrid in September, both sides have rolled out successive rounds of sanctions and export control measures: Washington expanded export control lists to more Chinese companies and imposed port fees on China-linked vessels, while Beijing blacklisted several U.S. drone firms. Just days before China’s new rare-earth measures, a U.S. congressional committee urged tighter export curbs on chipmaking equipment to limit Chinese access. Analysts expect further “twists and turns” ahead. Even if Chinese President Xi Jinping and Trump meet at the October APEC Summit in South Korea, few anticipate major concessions, though Beijing’s new controls may offer Xi added leverage.

    2. The West, including Canada, continues to accelerate rare-earth reshoring

    Spurred by China’s weaponization of rare earths, Western governments in recent years have been ramping up efforts to rebuild domestic supply chains. Through its 2022 Critical Minerals Strategy, Ottawa committed C$3.8 billion to accelerate domestic production and processing, with the Saskatchewan Research Council developing refining capacity could supply the U.S. defense sector. The U.S. One Big Beautiful Bill Act provided US$7 billion to boost critical mineral production through 2029, while Japan recently pledged a US$120 million investment toward a French rare-earth refining project to secure alternative sources. Australia is also developing a US$780 million critical minerals reserve that will prioritize future production sales to allies.  Meanwhile, the Trump administration has purchased a stake in two Canadian critical mineral companies to secure domestic supply, including one worth up to US$35.6 million.

    China’s tightening controls are likely to further strengthen these diversification drives, though reshoring remains capital-intensive and technologically challenging.

    • Edited by Vina Nadjibulla, Vice-President Research & Strategy, and Ted Fraser, Senior Editor, APF Canada

    Continue Reading

  • Blue, Yoda originally was, archival Star Wars sources reveal | Star Wars

    Blue, Yoda originally was, archival Star Wars sources reveal | Star Wars

    “You must unlearn what you have learned,” Jedi master Yoda instructed his stubborn apprentice, Luke Skywalker. And now Star Wars fans may have to do the same after confirmation that the beloved fictional alien was very nearly blue, or even…

    Continue Reading

  • Navigating the Economic Crime and Corporate Transparency Act 2023

    Navigating the Economic Crime and Corporate Transparency Act 2023

    This article was co-authored by Aminah Ibrahim, Trainee Solicitor. 

    The Economic Crime and Corporate Transparency Act 2023 (ECCTA) represents one of the most significant reforms to company law. For businesses and their advisors, it changes the scope from Companies House as a passive administrator to an active, verifying gatekeeper with substantial new powers. Here, we explore these key reforms which will not only mitigate risk, but will build a more resilient and transparent corporate framework. 

    A New Identity Verification Regime 

    One cornerstone of the ECCTA is mandatory identity verification (IDV). From 18 November 2025, all directors, persons with significant control (PSCs) and LLP members must have their identity verified. Non-compliance may lead to unlimited financial fines imposed to the individual, their company, and fellow directors. Further, from Spring 2026, only verified company officers, employees and an Authorised Corporate Service Provider (ACSP) will be able to file documents to Companies House. This has implications for groups with a centralised secretarial function, as an individual may no longer be able to file for multiple group companies without using an ACSP. Individual members of LLPs, and PSCs, will also need to verify their identity. Corporate members of LLPs and relevant legal entities (RLE) will also be subject to the IDV requirements, with RLEs required to nominate a relevant officer whose identity must be verified at a later date. 

    While this new requirement necessitates upfront planning, it fundamentally strengthens the corporate framework by ensuring that those who control and represent companies are appropriately verified, and  protects legitimate businesses from fraud. For groups of companies, the new filing restrictions creates an opportunity to streamline processes through a trusted ACSP. Companies may further wish to integrate these new obligations into shareholder communications and engagement. 

    Streamlining Statutory Registers

    From 18 November 2025, the obligation to maintain certain statutory registers is removed. Instead, the information held centrally at Companies House will be the complete record, with failure to file accurately met with an unlimited fine. While companies may still keep internal records for good governance, the focus shifts to ensuring prompt and accurate filing.

    The option to keep a register of members on the central register is also being removed as  this was rarely used. New rules will also require full forenames and surnames for individual members, prohibiting initials. Company secretaries should therefore review their registers now and use the new powers to request missing information, as non-compliant members may face criminal sanctions. A new obligation to submit a full list of shareholders to Companies House is also on the horizon.

    This move to a single source of filing simplifies the long-term maintenance of statutory records and takes away an administrative burden. The upcoming requirement for a full shareholder list also allows for more effective shareholder engagement and communication strategies. 

    Enhanced Scrutiny from Companies House

    Companies House now has the power to scrutinise submissions closely for errors and inconsistencies. It can query information, request supporting evidence, and even remove material from the register it believes to be incorrect. Crucially, it can impose direct civil financial penalties, similar to that of the Companies Act 2006 offences.

    Companies will need to ensure robust internal procedures for accuracy of all filed information. Failure to response to a Registrar’s request “without reasonable excuse”, or the submission of false information, can lead to unlimited fines. Where information is provided “knowingly” to mislead, individuals can also face a prison sentence. 

    This shift towards data integrity is a positive step for the UK business environment. It creates a more reliable public register which enhances trust for all stakeholders, from investors to suppliers, further assisting in the due diligence phase of company investigation. For our clients, this is an opportunity to review and strengthen internal filing procedures as well as  ensuring corporate diligence. 

    Other Changes 

    Further changes include a new restriction on corporate directors, limiting them to UK entities with legal personality. This is, however, provided on the basis that all of their directors are natural persons who have passed IDV. As such, groups should review their structures to ensure all corporate directors meet these requirements. As of 1 September 2025, the level of criminal liability has broadened. Large companies face new liability risks if they fail to prevent fraud committed by associates including employees, agents, and their subsidiaries, even where the fraud was intended to benefit the company or its customers. The ECCTA will also streamline filing options for small companies and micro entities, requiring more information to be placed on public records.

    Comment

    Overall, the ECCTA presents a strategic opportunity to strengthen corporate governance, enhance operational resilience, and builds market trust. By proactively embracing these changes, companies can turn regulatory requirements into a competitive advantage. As our clients adapt to these new reforms, businesses are now presented with strategic options. For many, they can leverage their position and become an ACSP; capitalising on a mandatory market and gaining a competitive edge.

    Kennedys can help navigate the legal complexities of becoming an ACSP; from structuring the application to implementing robust risk management procedures that meet these new legal and regulatory standards. 

    Related items:

    Continue Reading

  • Hennessy and Artist Tems Champion African Creativity in ‘Made for More’ Campaign

    Hennessy and Artist Tems Champion African Creativity in ‘Made for More’ Campaign

    Hennessy has launched its 2025 Made for More campaign – a cinematic exploration of African cultural pride, togetherness and creativity, featuring Hennessy’s new global brand ambassador GRAMMY Award-winning artist Tems and appearances from…

    Continue Reading

  • Flaw in Slider Revolution Plugin Exposed 4m WordPress Sites

    Flaw in Slider Revolution Plugin Exposed 4m WordPress Sites

    A security vulnerability affecting millions of WordPress websites has been uncovered in the widely used Slider Revolution plugin.

    The flaw, tracked as CVE-2025-9217, could allow users with contributor-level permissions or higher to read…

    Continue Reading

  • Just a moment…

    Just a moment…

    Continue Reading

  • Douglas Kirkland’s Collection of Iconic Romances

    Douglas Kirkland’s Collection of Iconic Romances

    The legendary photographer Douglas Kirkland, known for his intimate and iconic images of Hollywood’s elite, is celebrated in a new photo book, Romance. Published posthumously, the book is edited by his wife, Françoise Kirkland, and Sarah…

    Continue Reading

  • Study finds threefold higher cancer risk for 9/11 first responders

    Study finds threefold higher cancer risk for 9/11 first responders

    Emergency responders to the World Trade Center collapse on Sept. 11, 2001, have a nearly tripled risk of lung cancer, a new study says.

    The toxic dust and fumes that lingered over Ground Zero likely boosted lung cancer rates among rescue…

    Continue Reading

  • Indian hockey team loses 4-2 against Australia

    Indian hockey team loses 4-2 against Australia

    The junior Indian hockey team suffered a 4-2 defeat against Australia in its fourth pool-stage match of the ongoing Sultan of Johor Cup 2025 tournament at the Taman Daya Hockey Stadium in Johor Bahru, Malaysia, on Wednesday.

    Indian captain Rohit…

    Continue Reading

  • EHang Launches AAM Sandbox Initiative in Thailand, Accelerating Path to Global Commercial eVTOL Operations

    EHang Launches AAM Sandbox Initiative in Thailand, Accelerating Path to Global Commercial eVTOL Operations

    Bangkok, Thailand, October 15, 2025 – EHang Holdings Limited (Nasdaq: EH) (“EHang” or “the Company”), a global leader in advanced air mobility (“AAM”) technology, today announced that the launch of an AAM Sandbox Initiative (the “Initiative”) in Thailand, in collaboration with the Civil Aviation Authority of Thailand (“CAAT”) and local partners. The Initiative aims to fast-track the future commercial operations of EHang’s EH216-S pilotless eVTOL aircraft in the country, with the goal of establishing the world’s first commercial eVTOL operations using an innovative regulatory approach of “sandbox”. Today, continuous trial operations with EH216-S have successfully commenced at the first sandbox area in Bangkok, with plans to expand to more sandbox areas across Thailand.

     

    TG1-1.jpg

    Image: EH216-S completes point-A-to-point-B flights at the first sandbox area in Bangkok, Thailand

    During today’s launch event, the EH216-S completed a series of point-A-to-point-B autonomous flights with consistent stability, demonstrating its integrated flight control systems and operational reliability. The event gathered senior officials from the CAAT and the Ministry of Transport (“MOT”) of Thailand, along with key industry partners including Aerial Sea Ventures, Energy Absolute, Amita Technology, G Capital, China Harbour Engineering Company, Bangkok Airways, VietJet, and Tahira Group from Malaysia, all of whom witnessed firsthand the EH216-S’s proven readiness for commercial deployment.

    TG2.jpg

    Image: Mr. Conor Yang, CFO of EHang and Air Chief Marshal Manat Chavanaprayoon, Director General of the CAAT with the EH216-S

    Today, EHang also held a technical meeting with CAAT officials, presenting the EH216-S’s comprehensive safety architecture, Unmanned Aircraft System Traffic Management (“UTM”) integration, risk assessment framework, and flight-testing methodology. This multi-party collaboration with the Initiative represents a significant step toward gaining local regulatory approval for future commercial operations in sandbox areas across Thailand.

    Under the Initiative, EHang’s local partners will provide essential operational support, ranging from infrastructure to operational teams. They plan to expand the sandbox areas to Pattaya, Koh Larn, Phuket, Koh Samui and many other locations in Thailand for more sightseeing flight routes and transportation services.

    TG3.jpg

    Image: From left to right: Mr. Chakrawut Raisaeng, Deputy CEO of AMITA, Mr. Conor Yang, CFO of EHang, Air Chief Marshal Manat Chavanaprayoon, Director General of the CAAT, Mr. Panya Chupanit, Deputy Permanent Secretary of MOT of Thailand, Mr. Luong Pham, CEO of Aerial Sea Ventures, Mr. Anuwat Kosol, CEO of G Capital

    Thailand, Southeast Asia’s second-largest economy, represents a strategically vital AAM market. This is driven by its strong service sector, thriving tourism industry, and proactive government policies promoting smart transportation and sustainable technology. The country’s densely populated urban areas and persistent traffic congestion make it an ideal environment for deploying AAM solutions. Major cities such as Bangkok are particularly well-suited for air taxi services, offering significant market potential. This potential was clearly demonstrated last November when the EH216-S successfully conducted three days of human-carrying flights in central Bangkok, showcasing its practical capabilities in real-world AAM applications.

    “We are highly impressed with the cutting-edge technology and demonstrated safety of EHang’s EH216-S during these flights,” said Air Chief Marshal Manat Chavanaprayoon, Director General of the CAAT. “At the CAAT, we are guiding Thailand’s transition into a new era of AAM, where safety and public trust remain our highest priorities. Through our ‘prove it safe, then scale’ approach, we have explored a clear path toward commercial operations, with the target of launching the world’s first commercial eVTOL operation services within the next three months leveraging the Initiative. The future of AAM in Thailand will be safe by design, ambitious in vision, and realized through tangible action.”

    Mr. Panya Chupanit, Deputy Permanent Secretary of MOT of Thailand, stated, “The MOT is fully committed to advancing sustainable transportation, and the development of AAM technology—exemplified by EHang’s innovative eVTOL solutions—is integral to this vision. We are working closely with partners across sectors to position Thailand as a regional AAM hub, in line with our national goals for carbon neutrality and smart, connected cities. “

    Mr. Luong Pham of Aerial Sea Ventures remarked, “Today marks a historic day as we launch the future of transportation here in Thailand. With the EH216-S, we are entering an era where travel is measured in minutes, not hours, connecting waterways, islands and remote areas with unprecedented efficiency. With the strong support of the CAAT and MOT, we are now months—not years—away from commercialization in Thailand. We look forward to positioning Thailand as the regional hub for AAM across Southeast Asia.”

    Mr. Conor Yang, Chief Financial Officer of EHang, commented, “This demonstration showcased not only routine flight capabilities but also the core safety principles integral to our certified EH216-S aircraft. The AAM Sandbox Initiative in Thailand serves as a pivotal model for the region. Our goal is to leverage the operational and regulatory framework established here as a blueprint for expansion into other Southeast Asian markets, bringing safe, sustainable AAM to the wider region globally.”

     

     

    About EHang

    EHang (Nasdaq: EH) is the world’s leading advanced air mobility (“AAM”) technology platform company, committed to making safe, autonomous, and eco-friendly air mobility accessible to everyone. The company develops and manufactures a diversified portfolio of pilotless electric vertical take-off and landing (eVTOL) aircraft for a wide range of use cases, including aerial tourism, intra-city transport, intercity travel, logistics and emergency firefighting. Its flagship model, EH216-S, has obtained the world’s first type certificate, production certificate and standard airworthiness certificate for pilotless eVTOL issued by the Civil Aviation Administration of China, and is now commercially operated under the country’s first Air Operator Certificates for human-carrying eVTOL services. Complementing this, EHang’s VT35 expands its reach into long-range and intercity scenarios, supporting the development of a multi-tiered low-altitude mobility network. By integrating advanced autonomous technologies with scalable operational infrastructure, EHang is redefining how people and goods move—across cities, regions, and natural barriers—shaping the future of air mobility. For more information, please visit www.ehang.com. 

     

    Safe Harbor Statement

    This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about management’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to those relating to certifications, our expectations regarding demand for, and market acceptance of, our products and solutions and the commercialization of UAM services, our relationships with strategic partners, and current litigation and potential litigation involving us. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management’s control. These statements involve risks and uncertainties that may cause EHang’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

    Continue Reading