Good morning. When China tightened restrictions on rare-earth exports this month, stunning the White House, it was the latest reminder of Beijing’s control over an industry vital to the world economy. Its dominance was decades in the making.

• New restrictions: Earlier this month, China said it would require companies that make magnets abroad using Chinese rare-earth materials to seek permission from Beijing before exporting. Chinese officials have defended their rare-earth restrictions as legitimate moves aimed at preventing the minerals’ misuse. They have also accused the U.S. of using its own aggressive tactics to unfairly handicap China’s economy, citing U.S. export controls on semiconductors.
   
• Total control: Beijing’s methodical approach to dominating the industry—it now produces around 90% of global refined supply—reflects China’s ability to use state control over the economy to achieve goals that often elude the U.S., where policymaking is more erratic.
   
• U.S. eclipsed: As recently as 1991, the U.S. was the world’s leading supplier of rare earths. Since then, China has used aggressive tactics to build up and maintain its lock over rare-earth minerals, which are essential to making magnets needed for cars, wind turbines, jet fighters and other products. Beijing provided financial support to the country’s leading companies, encouraged them to snap up rare-earth assets abroad, and passed laws preventing foreign companies from buying rare-earth mines in China.

Tesla shareholders urged to reject Musk’s $1 trillion pay package.

Proxy advisory firm Institutional Shareholder Services has advised Tesla investors to vote against a new $1 trillion pay package for Chief Executive Elon Musk and against Tesla making a potential investment in xAI, his AI venture.

In a report Friday, the proxy firm wrote that it has concerns about the magnitude and design of the “astronomical” stock award, even though Musk only gets the payouts if he creates enormous value for Tesla shareholders.

State regulators snatch up former CFPB staff.

State banking regulators are nabbing former staffers of the Consumer Financial Protection Bureau, as they look to bolster consumer protection amid a pullback by the federal agency, Risk Journal reports.

State banking departments, including in Illinois and New York, have recently hired employees from the CFPB, which has faced defunding since President Trump took office.

• A United Nations-backed plan to decarbonize the shipping industry was put on ice Friday amid fierce opposition from the Trump administration.
   
• Walmart, once a byword for low pay, is becoming a case study in how to treat workers.
   
• Banks need to do a better job of preventing romance fraud schemes, a U.K. financial regulator said.
   
• Roche Holding said the Food and Drug Administration approved a drug for the treatment of adults with lupus nephritis, a potentially life-threatening autoimmune disease that commonly affects the kidneys.
   
• The U.K. Competition and Markets Authority said the $3.7 billion merger between Getty Images Holdings and stock-photo rival Shutterstock raises competition concerns.

The auto industry is panicking about another potential chip shortage.

The auto industry is digesting a new and potentially damaging supply-chain disruption from an unlikely source: a small Dutch semiconductor manufacturer with an outsize influence on how cars and trucks are made.

Nexperia notified customers last week that it was stopping shipments of parts, people familiar with the matter say. The company’s chips are used in everything from lights to electronics. The move came after the Dutch government wrested control of the company from its Chinese owner. Nexperia declared the continuing situation a “force majeure” event, the people say, citing a provision that generally can excuse companies from contractual obligations when facing an extraordinary situation.

Cyberattacks cripple small businesses, even when they aren’t hacked.

The August cyberattack on carmaker Jaguar Land Rover shows how destructive a hack can be, not only for the target but also its clients, supply-chain partners and workers.

The hack forced JLR, a division of Indian auto giant Tata Motors, to shut down production lines for at least six weeks while it recovered its technology systems. Factory workers went on furlough and suppliers that rely on steady orders from JLR continue to feel a financial squeeze.

• Israel’s military said it fired toward militants inside an area of Gaza under its control, yet another flare-up of violence that has threatened to derail the fragile cease-fire with Hamas.
   
• A major Amazon Web Services outage Monday disrupted the global internet, interrupting services from major retailers, airlines, social-media apps, financial-services companies and more.
   
• China said economic momentum decelerated to its slowest pace in a year, putting Beijing on alert in the midst of hardball trade negotiations with the U.S.
   
• Bolivians elected Rodrigo Paz as president on Sunday, ending two decades of socialist rule after he pledged to strengthen ties with the U.S. and develop the nation’s vast mineral wealth.

• Hundreds of thousands of protesters thronged city centers and parks for a national day of “No Kings” rallies, challenging what they say are authoritarian actions by President Trump.
   
• China has purged its second-most senior general and eight other high-ranking military commanders, as leader Xi Jinping dials up a crackdown on corruption and disloyalty in the armed forces with the ouster of a handpicked protégé.
   
• Congress is running out of time to decide the fate of Obamacare subsidies.
   
• Despite stock indexes hitting new records, investors are pulling back from sectors that are more sensitive to a slowing economy
   
• On Friday, Los Angeles Dodger Shohei Ohtani played what may be the greatest baseball game of all time.

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