China’s rare earth exports swell in June as Beijing relaxes controls

China’s rare earth exports surged in June to their highest level since December 2009, in what analysts said could be an early sign that recent behind-the-scenes agreements with the United States on the flow of critical minerals are beginning to bear fruit.

Exports of the elements reached 7,742.2 tonnes last month – a 60 per cent increase from the 4,828.7 tonnes recorded in June 2024 – and a 32 per cent jump compared to the 5,865 tonnes reported this May, according to customs data.

Rare earth exports have become a focal point for global trade in recent months, as Beijing tightened controls on shipments in April to assert its dominance over the supply chain – a move widely seen as a response to similar restrictions by the US on the flow of advanced semiconductors and increases to tariffs.

Hints of a thaw emerged in late June, when the Wall Street Journal reported that six-month export licences had been issued to select American manufacturers.

And last month, China’s Ministry of Commerce said it would improve how it handles export approvals for European countries and make it easier for their businesses to engage in legitimate trade.

Europe relies heavily on China for rare earths and magnets containing the minerals, and recent supply disruptions have unsettled local businesses.