China’s exports of rare earth minerals, essential for electric vehicles, smartphones, and military technology, fell by over 30% in September compared to August. This marks the third consecutive month of decline, with shipments totaling 4,000.3 tonnes, the lowest monthly figure since February.
The exact impact on specific countries or rare earth products remains unclear, but a detailed report is expected on October 20. Analysts suggest the drop may be linked to China tightening export controls earlier this year, possibly in response to trade tensions with the United States.
Despite the slump in rare earth exports, China’s overall trade performed strongly. September exports rose 8.3% year-on-year, the fastest growth in months, while imports increased 7.4%, indicating rising domestic demand.
China supplies more than 90% of the world’s processed rare earths, making the export decline significant for global industries, including technology, automotive, defense, and clean energy. If China is selectively restricting exports to key markets such as the U.S. or Europe, it could heighten trade tensions amid ongoing negotiations.
The upcoming detailed export data and global reactions will be closely watched as countries like the U.S., India, and EU seek to reduce reliance on Chinese rare earth supplies.
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