China rare earth exports to the US surge 660% after trade agreement
Total exports of the precious metals increased to 3,188 tons, up around 160% from 1,238 tons in May.
Even so, June's total was still 38% lower than the same month in 2024.
During the first half of 2025, exports of rare earth magnets also fell 18.9% on the year to 22,319 tons.
Total shipments to the US, meanwhile, rose to 353 tons in June, a boost that came after Beijing and Washington managed to secure a trade framework last month.
Building upon commitments made in May, when both nations agreed to reduce tariffs on each other for 90 days, the trade agreement involves a commitment from China to deliver more rare earths.
These minerals are used in an array of high-tech products such as smartphones, jet engines, EVs, and wind turbines.
In response to steep tariffs from the US administration, the Chinese government had imposed export restrictions on seven rare earth elements and magnets earlier this year.
The move threatened to derail global supply chains, with more than 70% of rare earth production based in China. More than 90% of the processing also takes place in China.
Despite their name, rare earths aren't actually scarce, although they are particularly difficult to mine and process. China's export curbs didn't just hit the US, but they also forced some auto part suppliers in Europe to halt production.
Last month, EU trade chief Maros Sefcovic commented on the restrictions: 'I informed my Chinese counterpart about the alarming situation in the European car industry, but I would say industry as such because clearly rare earth and permanent magnets are absolutely essential for industrial production.' He noted that it was an EU 'priority' to address export curbs.
In June, the US was the second-largest destination for China's rare-earth magnets, after Germany, and ahead of Vietnam, South Korea, and Thailand — in descending order.
As tensions now cool between Washington and Beijing, the US has also started to ease restrictions on tech products sent to China, in response to cooperation on rare earths.
US tech giant Nvidia said last week that it would start selling its H20 AI chip in China again after the Trump administration relaxed export controls. The White House gave assurances that it would grant licenses for the product in the Chinese market, after it banned sales of the chip to China in April.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
an hour ago
- Euronews
US space agency NASA set to lose around 20 percent of its workforce
Around 20% of staff at the US National Aeronautics and Space Administration, known as NASA, are expected to leave the space agency, a NASA email statement said Friday. According to US media reports, approximately 14,000 people would remain at NASA after the departure of some 3,870 people, though reports said that may change in the days and weeks ahead. NASA employees who chose to leave accepted the Trump administration's "deferred resignation" (DRP) option, according to the space agency's news Chief Cheryl Warner. According to Warner, about 870 personnel applied to leave in the first round, and another 3,000 did so in the second before Friday's deadline. The 500 employees who were let go as a result of regular attrition in the Voluntary Early Retirement Authority and the Voluntary Separation Incentive Program were also included in the figure. 'Safety remains a top priority for our agency as we balance the need to become a more streamlined and more efficient organisation and work to ensure we remain fully capable of pursuing a Golden Era of exploration and innovation, including to the Moon and Mars,' a statement said. Going by the numbers, NASA's staff is expected to shrink to about 14,000 by January next year. On Monday, some 362 signatories of a letter that included scientists and former and present NASA staff members released a statement denouncing budget cuts, grant cancellations, and what they called a "culture of organisational silence" that could endanger the safety of astronauts. The letter titled "Voyager Declaration" was the latest in a series of statements criticising cuts and changes that have been proposed at other government agencies. In his 2026 federal budget proposal, Trump slashed NASA's science budget by almost half and reduced its overall funding by 24%.
LeMonde
3 hours ago
- LeMonde
Donald Trump is on the verge of winning his trade war
When Donald Trump decided, in early spring, to abruptly suspend his unilateral tariffs after triggering a financial panic, the Financial Times published a sarcastic comment about the US president in early May, calling him "TACO" for "Trump always chickens out" in trade negotiations. This infuriated the head of state. "That's a nasty question," he said in the Oval Office of the White House after a journalist asked him about it. On July 15, Wall Street Journal columnist Greg Ip offered a less humorous but more direct evaluation: "Forget TACO. Trump is winning his trade war." The issue is not to defend Trump's trade policy – the WSJ called it "the dumbest trade war in history" – but to analyze whether the president is achieving the goals he set for himself. Ursula von der Leyen, president of the European Commission, is set to meet the US head of state in Scotland on Sunday, July 27, in a last-ditch effort to reach a deal before the August 1 deadline to avoid 30% tariffs on European goods. The WSJ columnist recalled that the president's intention was to impose the highest possible tariffs to protect American industry and fund all or part of the income tax. Treasury Secretary Scott Bessent used the argument of tariffs as a negotiating tool in an attempt to reassure US partners. But that was not Trump's concern.
Euronews
3 hours ago
- Euronews
Orban vows to veto EU budget over frozen EU funds
The Hungarian government will not vote on the EU budget until Budapest receives its frozen EU funds, Prime Minister Viktor Orbán said in a speech at the Bálványos Free University on Saturday. According to Orban, the adoption of the EU's record-breaking budget requires unanimity. "And until we get our backlog of money, there will be no new European budget. We will bring it home, and we will not make any concessions on our sovereignty," he said. Approximately €9.5 billion in COVID-19 recovery funding and €8.4 billion in cohesion funds make up the frozen funds by Brussels over persisting concerns about Hungary's democratic backsliding. Brussels and Budapest over the years have been at loggerheads on a range of issues, most recently that of Russia's invasion of Ukraine, but the situation has been made worse by the financial issue. Orbán accuses the European Commission of "financial blackmail" and meddling in domestic matters due to its reasons for freezing the funds. Hungary previously unblocked about €10.2 billion of the frozen funds following the adoption of legislation aimed at reducing political meddling in its courts and strengthening judicial independence. However, a complaint was filed by the European Parliament against the EU Commission for its controversial decision to release the €10.2 billion ahead of a crucial summit. Some €18 billion remains frozen, with no signs or indication of progress, but in front of the large audience, Orban vowed to get the EU funds. Orban claims Trump helped avoid World War III The Commission's landmark €2 trillion long-term budget for 2028–2034 emphasises defence and economic competitiveness. For it to pass, it requires unanimous agreement among member states and must also be backed by Parliament, by a majority of its component members. In his speech in Tusványos on Saturday, Viktor Orbán said that the election of US President Donald Trump has helped the world to avoid a third world war for the time being, but the chances of its outbreak are still increasing. Orbán gave a speech with a sinister tone, touching on a variety of topics that included the war in Ukraine and the Fidesz party. The Hungarian PM blasted the EU for backing Ukraine and accused the EU leaders of dangerously waging a trade war with the Trump administration that Europe "cannot win." While some of his claims were typically outlandish, Orban received applause from the audience, with one attendee saying, "We got a very clear, very understandable vision from the Prime Minister. And we are not in an easy situation."
