CHINESE exports of rare earth magnets to the US dropped sharply in August, a decline set to feature as a friction point at this week’s Trump-Xi summit in Washington, the Financial Times has reported.
Shipments fell to 512 tonnes, down 13% from a year earlier and 20% from July, according to official Chinese customs data released on Sunday.
Rare earths sit among dozens of critical minerals China dominates, and Beijing has used control over the magnets as leverage in trade negotiations since President Trump imposed tariffs last year. Washington believes Beijing has not fully honoured its pledge of uninterrupted supply under the one-year trade truce struck in Busan last November.
While volumes have recovered from a low of 46.4 tonnes in May 2025, prices remain elevated and industry groups fear renewed disruption to sectors from carmaking to fighter-jet production, said the FT.
Ahead of the summit, Treasury secretary Scott Bessent and Chinese vice-premier He Lifeng met in New York on Sunday, agreeing to launch a dialogue on artificial intelligence and discussing an extension of the truce.
Capital Economics said Chinese shipments to the US were falling at their fastest pace since the pandemic. China “appears willing to test the limits of the truce” by slowing licence approvals, it added.
Exports to Japan and Germany also fell year-on-year in August, by 17% and 22% respectively, said the newspaper.
China has separately tightened curbs on rare earth sales to Japanese firms following comments by Prime Minister Sanae Takaichi on Taiwan. Analysts say Western efforts to build alternative supply chains remain years away from bearing fruit.
