China’s Rare Earth Exports Reach One-Year High in May Despite Supply Restrictions: Discover the Reasons
China’s Rare Earth Exports Experience Significant Growth in May
In May, China saw a remarkable 23 percent increase in its rare earth exports, reaching a total of 5,864.60 tonnes, marking the highest monthly export volume in a year. This surge occurred despite supply restrictions that were implemented in April, which affected certain shipments but not all rare earth products. A detailed analysis of the restrictions’ effects is anticipated on June 20.
Impact of Supply Restrictions on Global Industries
According to a report from Reuters, China’s boost in rare earth exports in May stands in stark contrast to the supply constraints that were put in place the previous month. While China’s overall exports grew by 4.8 percent in May compared to the same time last year, this growth rate was slower than the 8.1 percent recorded in April, resulting in the weakest export performance in three months.
The April restrictions specifically targeted certain types of rare earths and magnets, leading to notable disruptions in global supply chains. Companies in India and various European automotive parts manufacturers faced production halts due to these curbs. Reuters noted that by April, exports of magnets from China had already halved, leading to warnings from semiconductor firms in Europe that they might have to halt production within a few weeks if shortages persisted.
Upcoming Release Aimed at Clarifying the Curbs’ Effects
The data released on June 9 does not specify the types of products impacted by the curbs, meaning a comprehensive overview of their effects will only be available in a detailed report set for release on June 20. Until then, the current trade statistics do not categorize rare earth exports by type.
Modest Growth in Rare Earth Exports in 2025
From January to May 2025, China exported a total of 24,827 tonnes of rare earth materials, which reflects a slight increase from 24,266.5 tonnes during the same timeframe in the previous year. This information comes from customs data cited by Reuters.
Understanding Rare Earth Minerals
Rare earth elements comprise a set of 17 minerals essential for high-tech applications, including electric vehicles, smartphones, and wind turbines. China continues to be the leading supplier of these critical materials worldwide.
Ongoing Trade Dialogues Between China and the US
In mid-May, a temporary truce was established as China and the US agreed to suspend most tariffs for a duration of 90 days. Discussions between trade representatives from both nations are currently ongoing, with meetings taking place in London. This decision follows a recent conversation between the leaders of the two countries.
In addition, sources from CNBC-TV18 indicate that key Indian ministers are contemplating sending a delegation of industry representatives to Beijing for discussions, particularly since India has not obtained import approvals for rare earth magnets from China since April 4, 2025.
