China’s rare earth magnet exports to the US decline amid trade war uncertainty

China’s exports of rare earth permanent magnets to the United States fell in August despite total shipments rising on the back of quicker approvals from Beijing.

China shipped 6,146 tonnes of permanent magnets last month, up 10.2 per cent month on month and 15.4 per cent year on year, according to official customs data. That marked the highest monthly total since January, when exports reached 6,357 tonnes.

The US, China’s second-largest buyer, imported 590 tonnes in August, down 5 per cent from July when imports had surged 76 per cent month on month. This represented a 12 per cent decline from a year ago – though in terms of value, August’s exports to the US rose 2 per cent.

By contrast, exports to the European Union (EU) continued to rise, as companies in the bloc step up efforts to secure relaxed restrictions amid an increase in production stoppages.

Rare earth permanent magnets are essential components in electric vehicles, wind turbines, smartphones, aeroplanes, spacecraft and other devices, including in the defence industry.

In August, researchers from Govini, a defence acquisition analytics firm, estimated that Beijing’s tighter controls could affect more than three-quarters of the US’ weapons supply chain.

South China Morning Post