BEIJING (Reuters) -Chinese battery maker shares rose on Friday after the government said it would suspend recent export controls, which included lithium-ion batteries and related materials, as part of a trade truce with the United States.
The battery thematic index rose as much as 4%, with the share prices of Shandong Hi-tech Spring Material Technology and Shenzhen Capchem Technology rising 20% and 10% respectively.
Under a deal agreed by President Xi Jinping and U.S. counterpart Donald Trump on Thursday, China will pause for a year export controls that it has announced since October, while the U.S. will reduce tariffs on Chinese imports.
Controls announced since October include a requirement for exporters of high-end lithium-ion batteries, cathodes, graphite anode material and related technology to apply for export permits.
The Ministry of Commerce did not respond to a request for comment about whether the pause includes battery controls, which were to take effect on November 8, as well as restrictions on industrial diamonds.
Before the truce was announced, battery buyers including Indian conglomerate Reliance Industries had rushed to move orders out of China before the controls took effect, people briefed on the matter told Reuters.
Under the export control pause, China will also delay the imposition of its latest restrictions on rare earth exports, though earlier restrictions on the critical minerals that have upended global trade remain in place.
(Reporting by Colleen Howe, Lewis Jackson and Gu Li; Editing by Christopher Cushing)
