China’s exports of rare earths (a group of 17 minerals at the centre of a trade dispute with Washington) rose 23% in May from a month earlier, according to customs data released on Monday, reported Bloomberg.
This increase comes two months after Beijing suspended exports of a wide range of rare earths and related magnets, underscoring China’s dominance in the global critical minerals industry with an aim to counter the US in the ongoing trade war with President Donald Trump.
Rare earth shipments increase
China exported 5,865 tons of rare earths in May. Although total shipments so far this year remain below 2024 levels, last month’s jump helped push the year-to-date figure 2.3% higher to 24,827 tons.
The data compiled by Bloomberg does not include rare earth products, which include high-value magnets for electric motors and hard disk drives.
Agenda of the trade talk
US and Chinese officials are set to meet in London this week as the world’s two biggest economies seek to diffuse tensions over tariffs and export restrictions, reported Bloomberg.
Rare earths are expected to top the agenda in the meeting among a list of grievances, which include China’s export controls on rare earth minerals and magnets, which are used widely in high-tech and defence manufacturing.
China’s dominance in rare earths reserves
According to Bloomberg, the export figures offer an incomplete picture of the impact of China’s curbs as they only apply to global sales of seven of the elements.
Those curbs were imposed on April 4 in retaliation for high tariffs levied on Chinese goods by Donald Trump. China accounts for almost 70% of the world’s production of rare earths.
May data for rare earth products is due to be released on June 18. The breakdown of export destinations should be available June 20, as reported by Bloomberg.
China plans to loosen export restrictions
As reported by Bloomberg, China appeared to loosen its curbs last month, after an announcement on May 12 that the two countries had agreed to charge lower tariffs and negotiate other barriers to trade. The US subsequently accused Beijing of stalling on sales, although delays may have been due to long lead times in China’s permitting system.
European trade officials and carmakers have also complained about disruption to supplies from China.
On Saturday, the Chinese government said it had granted approvals for some rare earths exports, without specifying which countries or industries were covered, in a move that could help smooth Monday’s talks with the US, according to Bloomberg.
Decline in rare earths product sales
Customs data showed that rare earth and product sales to the US in April dropped 37% from a month earlier to about 1,700 tons. Within that, rare earth magnet sales fell more steeply by 58% to 246 tons. Magnet sales to the whole world were 51% lower at around 2,600 tons.
