China rare earth magnet exports to US drop before Xi-Trump meet

CHINA’S exports of rare earth magnets to the US fell in August, ahead of a meeting between the leaders of the countries that will probably involve discussions on flows of critical minerals.

Shipments of magnets to the US dropped 21 per cent in August to 512 tonnes from July, according to Chinese customs data released on Sunday (Sep 20).

The industrial components – along with other types of rare earth products – became Beijing’s greatest point of leverage over Washington in trade negotiations in 2025.

US President Donald Trump and Chinese leader Xi Jinping are due to meet in the US capital on Thursday, to flesh out how the world’s two biggest economies will manage everything from trade to artificial intelligence.

China hopes to offer more licences for rare earth exports as a bargaining chip in talks, people with familiar with the matter said, without disclosing what Beijing would demand in return.

“Washington needs stability with Beijing to keep these critical inputs moving,” Chris Kennedy, lead for economic statecraft at Bloomberg Economics, said in a note.

“Yet periods of calm that restore access to lower-cost Chinese material weaken the urgency for the US to break its dependence on China.”

China imposed controls on exports of rare-earth magnets – used in everything from cars to consumer goods and weaponry – in April 2025, although they were subsequently eased.

The industry is keenly waiting for the outcome of the Xi-Trump talks as they come before the expiration of a US-China trade truce, which includes commitments by Beijing to maintain flows of critical minerals by issuing more generous export licences, in November.

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Shipments slumped in May 2025, but quickly recovered. They are running at an average of about 504 tonnes a month in 2026, although that is still below 621 tonnes in 2024 before the curbs.

Chinese customs data shows that direct exports of rare earths including yttrium, dysprosium and terbium – subject to export controls – have also dropped compared with previous years.

In May, US Trade Representative Jamieson Greer gave Beijing a “passing grade” for its performance in keeping flows of critical minerals going.

US Treasury Secretary Scott Bessent said in July that China should “fully meet its commitments”. Bessent and China’s Vice-Premier He Lifeng held talks in New York over the weekend ahead of the leaders’ meeting. BLOOMBERG