Quick overview

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China’s rare-earth exports declined in December compared to the previous month as investors monitor rising tensions between Beijing and Japan, which could lead to stricter shipment regulations. These materials are used in weapons systems, electric vehicles, and high-tech manufacturing.

 

According to customs data released on Sunday, outbound shipments totaled 6,745 tons, down from 6,958 tons in November. The category is mainly composed of rare-earth magnets, a product that has given China significant leverage in several trade disputes that have unsettled markets.

The US and other nations are trying to challenge China’s dominance in the mining and processing of rare earths, making it a hot topic in recent trade talks. The focus has shifted to Japan after China’s Ministry of Commerce announced restrictions on shipments to the country with possible military uses, despite a trade truce reached between Beijing and Washington in October that eased tensions.

The announcement followed comments by Japan’s prime minister regarding Taiwan last year. After the ministry’s statement, China Daily reported that Beijing is also considering tighter controls on licenses for exporting these minerals to Japan. The export data released on Sunday does not specify product types or destinations; it simply covers shipments to all locations.