China’s Rare Earth Exports to the U.S. Tumble Again as Trade Tensions Deepen

​Exports Slip for a Second Straight Month
China’s shipments of rare earth magnets to the United States dropped nearly 30% in September compared to a year earlier — marking the second consecutive monthly decline and reversing the short-lived rebound seen this summer.

According to China’s General Administration of Customs, exports fell 28.7% from August to 420.5 tonnes, signaling renewed strain between the world’s two largest economies. The downturn comes just months after Beijing had promised to speed up export permits during trade talks in London.

Beijing Tightens the Screws
Chinese magnet producers are now facing stricter export license reviews, with new rules introduced in early October that expand the country’s export control regime. The clampdown underscores how Beijing is using its grip on rare earths — materials essential to electric vehicles, wind turbines, and advanced defense systems — as leverage in its economic rivalry with Washington.

China dominates roughly 90% of the global rare earth magnet market, according to the International Energy Agency. Its latest export curbs have rattled global manufacturers, many of whom are scrambling to secure alternative supply lines to avoid future shortages.

The Global Race for Supply Chains
The ripple effects are already pushing U.S. allies to act fast. The U.S. and Australia just announced an $8.5 billion mineral partnership aimed at strengthening supply chains for critical materials used in clean energy and defense. Meanwhile, Noveon Magnetics, a Texas-based firm, signed a deal with Lynas Rare Earths of Australia to build a scalable U.S. supply chain for rare earth magnets.

Still, developing such capacity will take time. Making rare earth magnets is technically complex, requiring specialized refining and production infrastructure. Only a handful of American firms currently make them domestically — most still in early development stages.

The Bigger Picture
​Beijing’s export restrictions have highlighted just how dependent global industries remain on China for critical materials. As the U.S. races to decouple and diversify, the competition for control over the world’s next-generation supply chains is heating up — and rare earths are at the heart of it.