China rare-earth product exports shrink as US frictions flare

China’s exports of rare earth products fell in September from a month earlier, as Beijing’s tighter controls on strategic minerals ripple through global supply chains and heighten tensions with Washington.

Shipments of the materials used in electric vehicles, weapons and high-tech manufacturing stood at 6,538 tonnes, according to customs data released on Saturday (Oct 18). That compared to 7,338 tonnes in August.

That contrasts with steady increases in previous months, which lifted shipments in August to their highest level since at least 2012.

Beijing this month unveiled sweeping new curbs on rare earths, including an extension of export controls to products traded outside China that contain even tiny amounts of material with Chinese origin. The Trump administration has condemned the measures as a threat to global supply security, while Chinese officials have said that they are responding to an escalation in trade restrictions imposed by the US.

China, the world’s top producer, placed controls on some rare earths shipments in April. Its exports then slumped before a tentative truce brought several months of recovery. Now, Beijing’s hardball tactics are sparking a global pushback, and US Treasury Secretary Scott Bessent hinted at a coordinated response during an annual huddle of global economic chiefs in Washington this week.

Markets are now watching the planned sit-down between Chinese President Xi Jinping and US President Donald Trump in South Korea next week, which might provide an opportunity for the rivals to find an off-ramp from the latest tensions and allow their rolling tariff truce to extend. BLOOMBERG