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US-China trade war
EconomyChina Economy

Chinese rare earth magnet exports to US hit 9-month high as trade war resolves

Shipments of the valuable components to the US increased in October, while those sent to the European Union fell from their September levels

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Rare earth magnets produced at a factory in Narva, Estonia, in September. Exports of Chinese rare earth magnets to the EU have fallen for the past two month. Photo: Xinhua
Alice Li

China’s shipments of rare earth permanent magnets to the US surged to a nine-month high in October as the two countries engaged in a roller-coaster round of manoeuvring over export controls that led to an easing of trade tensions late last month.

During the same period, exports to the European Union fell from the level recorded in September.

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China is the world’s largest supplier of permanent magnets – essential components in hi-tech products such as electric vehicles and defence systems – and holds a near-monopoly share of the supply and refining capacity for rare earth elements, the trace minerals within the magnets that grant them their unique properties.

According to data released by China’s customs administration on Thursday, shipments of Chinese permanent magnets to the United States surged 56.1 per cent in October to 656.3 tonnes (723.4 short tons), up from 420.5 tonnes (463.5 short tons) in September.

The US absorbed 12 per cent of total shipments, making it the second-largest buyer of Chinese rare earth permanent magnets by country last month, behind only Germany. South Korea ranked third, Vietnam fourth and India fifth.

Beijing imposed export controls on seven rare earth elements and permanent magnets earlier this year amid escalating trade tensions with the US, with exporters required to obtain government approval before shipping the restricted products overseas.
In early October, Beijing announced plans to expand the scope of its export rules related to the minerals and widen its coverage umbrella to include five more elements, but it agreed to delay the new measures by a year following a meeting between President Xi Jinping and US President Donald Trump in South Korea late last month.
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With trade tensions between the world’s two largest economies having eased, US Treasury Secretary Scott Bessent said last week that they would “hopefully” reach a deal on rare earths by America’s Thanksgiving holiday – which falls on November 27.

When asked at a news conference in Beijing on Thursday about reports that the US and China were negotiating key details of general licences for rare earth exports, Ministry of Commerce spokeswoman He Yongqian said China was “strictly following the consensus reached during the China-US trade talks in Kuala Lumpur and carrying out the relevant implementation work”.

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