The rose-red cover on the Giant ATX 850 handlebar has strong magnets. What is it used for?

This is the "wrist set top cover" or "stem top cover" (the screw in the center is screwed inward to lock the suspension core). This top cover is generally made of heat-treated aluminum (such as 6061-T6), steel, or titanium alloy, and is non-magnetic.

The wrist set cover can be replaced at will

The wrist set