China’s rare-earth product exports hit six-month high

Supplies slumped in April and May after China launched sweeping export controls on rare earth magnets in retaliation for US tariff threats

China’s exports of rare earth products — including magnets — extended their recovery in July, months after Beijing threatened a disruptive global shortage by crimping supplies to fight a trade clash with US President Donald Trump.

Volumes shipped overseas rose 69% to 6,422 tons in July for the highest tally since January this year, according to Bloomberg News calculations. The “products” category is typically dominated by magnets, tiny but critical manufacturing components that became central to US-China trade talks earlier this year.

Supplies slumped in April and May after China launched sweeping export controls on rare earth magnets in retaliation for US tariff threats. Beijing then agreed to speed up shipments after the two sides struck a trade truce.

US Trade Representative Jamieson Greer said earlier this month that China was “about halfway there” in terms of returning magnet supplies to where they were prior to the controls.

China’s weaponization of rare earths didn’t just affect the US, with carmakers from Europe to India also facing disruptions during the period of tightest supply. More granular data on exports of magnets and for particular destinations should be released on Wednesday.