China’s Rare-Earth Magnet Exports to US Decline Amid Trade Volatility

China's exports of rare-earth magnets to the United States fell 11% in the latest month, with shipments dropping to 582 tons from 656 tons previously. The decline underscores the ongoing instability in this trade lane, which has fluctuated throughout the year due to geopolitical tensions and export controls.

Rare-earth magnets, critical components in EV motors, drones, and military systems, have been Leveraged by Beijing as a strategic tool. In April, tightened export controls briefly slashed US-bound flows below 50 tons before a partial recovery. Recent months have seen a fragile balance of trade actions and brief truces, with November’s pullback signaling renewed friction.

Meanwhile, China’s Commerce Ministry has streamlined approvals for general export licenses, aiming to expedite shipments for qualifying companies. Officials declined to specify whether European firms were included in the fast-track approvals, stating only that some exporters met preliminary requirements.