China's rare earth exports hit record high in August ahead of Xi-Trump call

China's rare earth exports surged to a record 7,338 tons in August, even as EU firms raise issues on licensing delays

China’s exports of rare earth products jumped to their highest level on record in August, customs data showed.

 

Shipments of the minerals rose to 7,338 tons last month, according to Bloomberg calculations. That’s the largest monthly figure since records began in 2012 and a sharp reversal from July, when exports slumped 23 per cent to 5,994 tons after hitting multi-year highs in June.

 

The release of August’s record export data comes just before a planned call between Chinese President Xi Jinping and US President Donald Trump set to take place on Friday. The White House confirmed the conversation, though Beijing has not commented.

 

Rare earth mineral curbs

Rare earth minerals are vital for the production of high-performance magnets, semiconductors, and components in electric vehicles, wind turbines, and defence equipment. China accounted for more than 69 per cent of global mine output in 2024 and nearly half of the world’s reserves, according to the US Geological Survey.

 

China is the world’s dominant producer of rare earths, accounting for more than two-thirds of global mine output and nearly half of global reserves. Beijing imposed export restrictions after the US imposed tariffs on Chinese goods. Its export restrictions have become a central point amid trade disputes with the United States and Europe.

 

Rare earth licensing issues

Despite the August surge, the European Chamber of Commerce in China said its members continue to face inconsistent licensing approvals.

 

“At least one member has lost millions of euros as a result,” the group told reporters, CNBC reported on Wednesday, while warning that approvals in recent weeks have become harder to secure. Nearly half of the EU’s rare earth imports came from China last year, leaving several European firms grappling with uncertainty.

 

India to see some relief

Towards the end of August, China agreed to ease supply curbs to India, offering relief after months of strain on supply chains. Still, experts have warned that India remains exposed. “Unlike China, India hasn’t sufficiently invested in securing rare earth supply chains,” Rajoo Goel, head of industry group ELCINA, told The Times of India. India, like many other nations, is now looking to diversify their supply chains.