There is a lot to to about this rare earths lately, apparently we need it for most of our devices. So what is this rare earths issue exactly?

Well, let me explain. In 4 minutes from now, you’ll know exactly what it is, why it matters and which Hong Kong dividend growth stock quietly sits right in the middle of it.

Bear with me, here we go.

So, what are these rare earths anyway?

Rare earths are a group of 17 metals that you never see, but they are inside almost everything around you.
Your phone, laptop, electric car, wind turbine, even fighter jets all need them.

They are not really rare, but difficult to separate from the rock.
That makes the supply chain complex and expensive and whoever controls that chain has real power.

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Why does China dominate rare earths?
For decades, China invested heavily in the dirty part of the business that most countries didn’t want: mining, refining and separating the metals.
Today, around 70 percent of all rare earths come from China and over 80 percent of the global refining and magnet production happens there.

Even if you mine rare earths in Australia or the US, you often still need China to process them.
That’s how much control/moat they have.

And then this geopolitical twist happened

In October 2025, China announced new export rules that shook the market.
It added restrictions on rare-earth materials and the technology used to process them even outside of China.

Analysts called it a warning shot to the West, especially since these materials are needed for electric vehicles, renewable energy, and modern weapons.

A month later, Beijing softened the rule with a one-year license, but nobody missed the message.
China knows how valuable its position is.

At the same time, the US keeps tightening export limits on advanced chips from companies like NVIDIA.
Many analysts see rare earths as China’s counter move in this ongoing technology trade war.

The Hong Kong connection

Among all Hong Kong-listed dividend growth stocks, one company stands out: Jiangxi Copper (HKG:0358).
It is known for copper, but it also owns one of China’s largest light rare-earth mining areas in Mianning County, Sichuan.

Jiangxi Copper has built an entire chain around it, from mining and separation to magnet components used in electric motors.

It’s not a pure rare-earth company, but it has a real footprint in both traditional metals and the new green economy.
That combination makes it one of the few Hong Kong names with direct exposure to this global run on rare earth.

Why you, the dividend investor, should care:

Mining companies can be cyclical, but when they manage their cash flow well, they can also deliver strong dividends.
As the world pushes toward electrification and renewable energy, the demand for copper and rare-earth magnets keeps rising.
That trend supports both future earnings and dividend potential.

For dividend growth investors, it’s a mix of stability and opportunity: a dividend growth stock with exposure to a future-defining material.

So what’s the takeaway?

• Rare earths are the invisible metals behind almost every modern technology.
• China dominates the supply chain and uses it as a strategic advantage/defense.
• Jiangxi Copper (HKG:0358) can give Hong Kong investors exposure in this domain.
• It connects the old economy of metals with the new economy of clean energy and technology.