China’s magnet exports to US slammed in May as Beijing’s rare earth curbs hit: data
Wielding its biggest bargaining chip in trade dealings with Washington, Beijing applied pressure by imposing export controls on some critical minerals
The volume of China’s export shipments of magnets to the US, a chokepoint in the ongoing trade war between the world’s two largest economies, plunged in volume by 93.3 per cent in May, year on year, according to the latest customs data.
China exported around 46.4 tonnes of magnets to the US last month. It was also a sharp month-on-month decline of 81 per cent from 246.3 tonnes shipped in April.
The total export of magnets, which dominate China’s critical minerals shipments, fell by nearly 74.3 per cent, year on year, in volume last month, and declined more than 76.1 per cent in value, according to data released on Friday.
The drastic decline in exports – following export controls imposed by Beijing to counter Washington’s sweeping tariffs on Chinese goods – has piled pressure on US manufacturers in the defence, energy and automotive sectors.
Meanwhile, exports to Germany, Europe’s manufacturing powerhouse, dropped last month by 70 per cent in volume, year on year, while shipments to Japan fell by 84.1 per cent.
Addressing the highly watched export controls of critical minerals, China’s Ministry of Commerce spokesperson, He Yadong, said on Thursday that the country has been accelerating the review of rare earth-related export licence applications in accordance with relevant laws and regulations, and has approved a number of them.
“China is willing to enhance communication and dialogue with relevant countries on export controls and actively promote the facilitation of compliant trade,” He added.