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China's rare earth magnet exports to US drop 20%, critical elements cut to Japan

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • China's exports of rare earth magnets to the U.S. in the first half of 2026 were 20% lower than the average from 2022-2024, raising concerns about Beijing's adherence to trade agreements.
  • This decline contradicts China's commitment under the trade truce with the U.S. to maintain exports of critical minerals essential for industries like electric vehicles and defense.
  • China also significantly reduced rare earth mineral exports to Japan in June, including gallium, dysprosium, terbium, and yttrium, exacerbating supply issues amid diplomatic friction.

China's exports of rare earth magnets to the United States have fallen significantly below pre-trade war levels, sparking doubts about Beijing's commitment to its trade agreements. In the first half of 2026, exports of this critical industrial material to the U.S. were 20% lower than the average seen between 2022 and 2024, according to Chinese customs data released on June 20.

This trend raises concerns, particularly as China had pledged to maintain exports of key minerals, including rare earth magnets, as part of the trade truce agreement reached with then-President Trump in October 2025. These minerals are vital for numerous industries, from electric vehicles and factory automation to defense equipment, making a stable supply a top priority for U.S. manufacturers.

Sources indicate that White House and U.S. Trade Representative officials believe China is not fulfilling the agreement as understood by the U.S. However, Trump and other senior officials have been hesitant to exert pressure. U.S. Trade Representative Greer stated that China's compliance on rare earth issues is "not perfect."

In June, China's overall rare earth magnet exports remained robust, reaching 5,649 metric tons, an increase from 4,730 metric tons in May. However, separate data reveals a sharp decline in China's rare earth mineral exports to Japan for June, continuing a trend driven by diplomatic tensions. Exports of gallium, dysprosium, terbium, and yttrium to Japan were zero for the month.

The shortage of yttrium, a rare earth element used to protect turbine blades in aircraft engines and power plants from extreme heat, has already severely impacted the market. China exported no yttrium to Japan in June and has not exported this element to the U.S. for two consecutive months. This situation follows diplomatic friction, notably after Japanese Prime Minister Sanae Takaichi's remarks on Taiwan in November 2025, which displeased Beijing.

China's compliance on rare earth issues is 'not perfect.'

— GreerThe U.S. Trade Representative's assessment of China's adherence to trade agreements regarding rare earth minerals.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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