China's Rare Earth Magnet Exports Decline

China's exports of rare earth magnets fell 6.1% in September to 5,774 tonnes, interrupting a three-month increase and reviving concerns that Beijing could leverage its dominance over critical minerals in trade disputes.

Customs data show the September decline followed a seven-month high of 6,146 tonnes in August. On a year-on-year basis shipments rose about 17.5%, but nine-month exports totaled 39,817 tonnes, down 7.5% from the same period last year. Shipments to the United States plunged 28.7% month-on-month, while exports to Vietnam surged 57.5%; Germany, South Korea, Vietnam, the United States and Mexico were the largest destinations by volume.

Analysts say tighter scrutiny of export licences and an expanded licensing regime signal Beijing can and may restrict flows to exert pressure, echoing April–May curbs that affected global automakers and defence supply chains. A June agreement had eased some controls, but fresh tariff threats and licensing changes have heightened fears of renewed export constraints ahead of a planned Xi-Trump meeting in South Korea.

Market watchers warn such measures could entangle civilian manufacturers, exacerbate supply-chain insecurity for high-tech and defence sectors, and prompt longer-term diversification efforts.