China’s exports of rare earth magnets fell 6.1% in September, sparking renewed concerns that Beijing may again use its dominance in critical minerals as leverage in trade talks with the United States.
Customs data showed shipments dropped to 5,774 tonnes from 6,146 tonnes in August, ending three consecutive months of growth and coming just before China expanded its export licensing regime.
Analysts say the decline signals that Beijing may be tightening control over exports of materials vital to industries ranging from defence and automotive to electronics.
“The sharp swings in rare earth magnet exports show that China knows it holds a key card in international trade talks,” said Chim Lee, senior analyst at the Economist Intelligence Unit.
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China, the world’s largest producer of rare earths, has previously restricted exports amid disputes with Washington.
Despite a June agreement to ease the flow of critical minerals, tensions have escalated in recent months, with both sides trading new tariff threats.
Exports to the United States plunged nearly 29% in September, while shipments to Vietnam surged 57%. Over the first nine months of 2025, total exports fell 7.5% year-on-year to 39,817 tonnes.
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Experts warn that tighter controls could again disrupt global supply chains, given the world’s heavy reliance on China for these essential materials.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
