China’s exports of rare earth magnets hit a six-month high in July, reaching 5,577 metric tons

Exports of rare earth magnets from China hit a six-month high in July after months of heightened export restrictions. The increase in exports of rare earth magnets suggests that trade of critical minerals has returned to levels seen before Beijing imposed export curbs.

The General Administration of Customs revealed that China’s exports of rare earth magnets reached a six-month high of 5,577 metric tons in July. According to the report, last month’s exports were 75% higher than the previous month’s shipments. 

U.S. and China agree to ease export controls on rare earth minerals

July’s exports were also in line with analysts’ expectations. It was also 5.7% higher than the 5,278 metric tons exported in the same month last year.

Exports from the world’s largest rare earth magnet supplier also reached 32,569.2 metric tons in the first half of 2025. It was roughly 12% higher than the 29,095 metric tons shipped during the same period last year. 

Germany led with the most imports of rare earth minerals, with a volume of 1,116 metric tons. Its July shipment was also roughly 46% higher than the prior month. 

The U.S. also saw a surge in rare earth shipments, up by 75.5% from the month before to 619 tons. Its shipments were also 4,8% higher than the same month in 2024. The U.S. also accounted for the second-largest importer of China’s rare earth magnets in June, following Germany.

The bounceback of exports from Beijing came after the U.S. and China agreed to a series of deals with Washington and Europe to increase shipments. The nations also agreed to ease the export control imposed in April by China in retaliation for U.S. levies.

Zhang Wei, senior commodities analyst at Asia Resource Capital, suggested that the surge of exports in June showed the change in bilateral agreements between China and the U.S. after months of a heightened trade war.

As previously reported by Cryptopolitan, Beijing imposed the rare earth export controls in April as a strategic response to increased U.S. duties on Chinese goods and technology transfer imposed by Western nations. China produces more than 70% of rare earth minerals in the global supply chain, and 90% of the processing is also happening in the country. The nation’s Ministry of Commerce argued that the export controls were necessary measures to protect China’s national security interests.

Export restrictions caused a huge drop in shipments in April and May due to lengthy approval processes for securing export licenses. It disrupted global supply chains and forced companies in the auto industry outside Beijing to halt some production due to a rare earths shortage.

In July, the European Parliament stressed the need for the EU to strengthen areas in which it holds critical advantages over China in goods and technologies. The initiative came as China required exports to provide additional licenses before being able to export to Beijing. The EU said it was concerned about Chinese demands for export applicants to disclose sensitive data.

The Commission proposed implementing the Critical Raw Materials Act (CRMA) to ensure the EU has secure, diversified, and sustainable access to raw materials. It also called for eliminating bilateral partnerships with countries with high sustainability standards.

China lifts restrictions on rare earth exports to India

On Tuesday, China also removed rare earth export restrictions on India after a visit by Chinese foreign minister Wang Yi in New Delhi. Prime Minister of India, Narendra Modi, believes stable, constructive ties between the two nations will contribute significantly to regional and global peace and prosperity.

As previously reported by Cryptopolitan, Wang proposed that India and China find ways to coexist against unilateral bullying, though he did not mention Washington directly. Wang met with his Indian counterpart, Subrahmanyam Jaishankar, and acknowledged that the two countries should consider each other as partners and opportunities rather than adversaries or threats.

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