According to CNBC repots, After Washington-Beijing trade deal, American companies moved fast to get the consignment of critical rare earth magnets from China
According to Beijing’s General Administration of Customs. China has exported more rare earth metals in June, with consignments to the US rising by 660% on a monthly basis, This is an increase of over sevenfold compared to May, as firms rushed to obtain these vital minerals following a trade agreement between Beijing and Washington.
Despite this recent surge of the metal, the deliveries were nearly 50 % that from the last year in the same duration of June, the data showed. The total was still 38% lower than the same month in 2024
Total exports of the precious metals increased to 3,188 tons, up around 160% from 1,238 tons in May.
Data shows that during the first half of 2025, exports of rare earth magnets also fell 18.9% on the year to 22,319 tons. Interestingly the US was the second-largest recipient of rare earth magnets in June after the Germany, ahead of Vietnam, South Korea, and Thailand
A boost has come after the Beijing and Washington both managed to finalize a trade framework last month, after that total shipments to the US, rose to 353 tons in June.
After the recent tariff trade war across the world, both countries agreed to reduce tariffs on each other for 90 days, after that the trade agreement involves a commitment from China to deliver more rare earths.
These rare earth minerals are used in multiple industrial products which is great demand across the world mainly in high-tech products such as smartphones, wind turbines, jet engines and EVs.
After imposing a steep tariffs from US administration, in response the Chinese government had imposed a strict export restrictions on extensively used seven rare earth elements and magnets earlier this year.
This sudden Chinese restriction has threatened and derail the global supply chains of the rare earth minerals and metals. China holds 70% of rare earth production of the world. Other than this 90% of the processing of rare earth metals also takes place in China.
As the tensions between the Washington and Beijing, now the US has started easing restrictions on tech products exported to China, in response to cooperation shown by China on rare earths.
US tech giant Nvidia also said last week that it would start exporting its H20 AI chip to China again after the Trump administration relaxed export controls. The White House also assured that authorities would grant licenses for the product in the Chinese market, after it banned sales of the chip to China in April
