【By Observer News, Xiong Chaoran】According to data released by the General Administration of Customs on October 20, China's export volume of rare earth magnets in September fell by 6.1% compared to August, reaching 5,774 tons, ending a three-month growth streak.

On the same day, Reuters cited Chim Lee, a senior analyst at the Economist Intelligence Unit (EIU), who said that the sharp fluctuations in China's rare earth magnet exports indicate that China is aware it holds a key card in international trade negotiations. "The ability of China to implement export controls on rare earths is an extremely powerful tool," said Wang Dan, the head of the China division at the Eurasia Group consulting firm.

Wang Dan added that Western countries are not used to complying with the control of critical resources by "the other side" (the other side) and that "the world must adapt to China's management model."

Photo: Rare earths waiting for export in Lianyungang, Jiangsu - Reuters

According to reports, China's rare earth magnet exports in September fell to 5,774 tons from 6,146 tons in August (the highest point in seven months). The report suggests that the current level of Chinese export scrutiny on rare earths is similar to the most intense period at the beginning of the trade war in April this year.

However, compared to the same period last year, China's rare earth magnet exports in September increased by 17.5%.

By destination, Germany, South Korea, Vietnam, the United States, and Mexico were China's top five destinations for rare earth magnet exports last month. In the first nine months of this year, China's total rare earth magnet exports reached 39,817 tons, down 7.5% compared to the same period in 2024.

Data shows that China's rare earth magnet exports to the United States fell by 28.7% in September compared to August, while exports to Vietnam rose by 57.5%.

In addition, the processing volume of rare earth magnets in the Netherlands increased by 109% compared to August, but this data is significantly influenced by Rotterdam port, a major European transit hub.

Chim Lee pointed out that the previous surge in rare earth magnet exports in the third quarter occurred after China relaxed export controls earlier this year, but with the recent introduction of stricter export control regulations, exports may fall again.

On October 9, the Chinese Ministry of Commerce issued two announcements regarding enhanced export controls on rare earth-related items. On the same day, China also announced several additional announcements, which not only added several new rare earth elements and dozens of rare earth processing equipment to the export control list, but also involved ultra-hard materials, lithium batteries, and artificial graphite anode materials.

On the same day, the U.S. "Wall Street Journal" published an article suggesting that China's latest measures related to rare earths are considered an almost unprecedented (a nearly unprecedented) export control. The British "Financial Times" stated that China's export controls have intensified concerns in the U.S. and Europe about their continued access to these rare earth metals.

On October 16, He Yongqian, spokesperson for the Ministry of Commerce of China, stated that China's recent rare earth export control measures are a legitimate practice based on laws and regulations, aimed at improving its own export control system. The purpose is to prevent rare earths from being illegally used for large-scale destructive weapons or other improper purposes, and to better safeguard China's national security and global common security.

The U.S. recently claimed that China's measures would have a widespread impact on multiple industries such as semiconductors, artificial intelligence, and smartphones. He Yongqian responded that the U.S. interpretation seriously misrepresents and exaggerates China's measures, deliberately causing unnecessary misunderstandings and panic.

Reuters reported on October 20 that just before the release of China's rare earth magnet export data, President Trump on Air Force One told reporters that he did not want China "to play the rare earth game" with them. He also implied that if China, the world's largest agricultural buyer, promised to purchase U.S. soybeans, he might delay increasing tariffs on China.

On the same day, Reuters also noted that China did not import any soybeans from the United States in September this year, marking the first time since November 2018 that imports dropped to zero. At the same time, due to the ongoing U.S.-China trade dispute, Chinese buyers avoided U.S. sources, and soybean exports to China from South America saw a significant increase compared to the same period last year.

This article is an exclusive piece by Observer News. Reproduction without permission is prohibited.

Original: https://www.toutiao.com/article/7563211339754144265/

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