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Trade Trends News
2025-08-12
Customs data released on August 7 shows that China's rare earth exports fell by 23% in July after hitting a record high the previous month. However, the preliminary data is incomplete, making it difficult to draw firm conclusions about Beijing's commitment to accelerating exports.
According to the General Administration of Customs, China—the world's largest producer of rare earths—exported 5,994.3 metric tons in July, down 23% from June, when exports reached their highest level since at least 2014.
China's rare earth exports have come under close scrutiny following a series of agreements with the United States and Europe to increase exports and relax an export licensing system imposed in April in retaliation for U.S. tariffs.
However, it is difficult to draw conclusions from the August 7 data, as it does not differentiate between various rare earths and related products, some of which are not subject to restrictions. In addition, the figures are highly volatile, with double-digit fluctuations being common.
More comprehensive data, including rare earth magnet exports, will be released on August 20. Last month, China's magnet exports to the United States and Germany surged. Magnets are critical for the automotive, electronics, and defense industries.
At the same time, China has quietly tightened control over the sector just as the United States, Europe, and Australia have introduced or considered financial support for alternative rare earth producers.
Last month, China for the first time issued its 2025 quotas for rare earth mining and smelting, without making the typical public announcement.
In the first seven months of this year, China's total rare earth exports reached 38,563.6 metric tons, a 13% increase compared with the same period in 2024.
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