Beijing: China’s exports of rare earth elements surged 23% in May, hitting the highest level in a year, despite targeted export restrictions that have disrupted global supply chains. The sharp monthly increase brought total exports to 5,864.60 tons, even as Beijing’s curbs on certain types of rare earths and magnets caused shortages in key international industries.
Although China remains the world’s largest producer of rare earths, its April decision to restrict outbound shipments of specific rare earth products—particularly rare earth magnets—has already sent shockwaves through global manufacturing. Several European auto component plants were forced to halt production last week due to a lack of critical materials, while semiconductor manufacturers warned of looming shutdowns within weeks if supply bottlenecks persist.
The export controls were a central point of discussion in a rare phone call last week between U.S. President Joe Biden and Chinese President Xi Jinping, highlighting the strategic significance of rare earths in the broader geopolitical and economic relationship between the two powers.
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While the 23% month-on-month increase marks a rebound in overall exports, the impact of Beijing’s selective curbs remains unclear. The data released on Monday did not break down exports by rare earth type, meaning a comprehensive assessment of the curbs’ effect will only be possible when more detailed trade figures are released on June 20.
In the broader context, Chinese customs data showed that total exports of rare earths in the first five months of 2025 rose slightly to 24,827 tons, compared to 24,266.5 tons in the same period last year. However, rare earth magnet exports dropped by half in April, signaling the growing influence of regulatory decisions on global tech and manufacturing sectors.
