&imwidth=800&imheight=600&format=webp&quality=medium "China’s rare earth exports soar after trade war restrictions eased")
China’s exports of rare earth elements surged sharply in June, rebounding from multi-year lows after Beijing eased some of its stringent trade war restrictions. The increase suggests a partial recovery in the global supply of magnets and other high-tech materials, following months of disruption caused by Chinese export curbs. According to customs data released on July 18, China exported 7,742.2 tonnes of rare earths last month, marking a 60.3 per cent rise from June 2024 and a 30.8 per cent increase compared to May 2025. The value of those exports climbed to 170 million yuan ($23.66 million). Exports of all rare-earth-related products, including finished magnets, rose 80 per cent from May’s five-year low to 3,808 tonnes.
The sharp rise in shipments comes after China’s Ministry of Commerce began clearing a backlog of export licenses, which had been held up following sweeping controls imposed in April. Those curbs, seen as one of Beijing’s most powerful tools in its trade war with the Trump administration, targeted seven of the 17 rare earth elements, many of which are vital for electric vehicles, smartphones, wind turbines, and military equipment.
Magnet supplies begin recovery after severe squeeze
Magnets, which form a significant portion of rare-earth product exports, were at the centre of recent US-China trade tensions. The earlier export restrictions had triggered panic across global supply chains and prompted President Donald Trump to agree to a limited trade truce in June, amid fears of industrial disruption.
Analysts believe the June export rebound signals that China is cautiously resuming supply flows under pressure from global customers. Governments across Europe, India, and the United States had urged Beijing to resume exports to stabilise the rare-earth market.
Security crackdown, geopolitical frictions persist
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Despite the export rebound, tensions remain. On July 18, China’s Ministry of State Security accused unnamed foreign intelligence agencies of smuggling rare earth materials through postal systems. The ministry vowed to intensify crackdowns on illegal trafficking, reinforcing the strategic and national security importance Beijing places on these resources.
While volumes are still below pre-curb levels, the June data suggests global manufacturers may get some near-term relief, though uncertainty remains as trade, technology, and security concerns continue to shape rare earth policy.
(With inputs from agencies)