China’s rare earth exports witnessed a sharp decline in September. According to the customs data, it has fallen by 31% from a month earlier. This sudden drop in rare-earth exports follows the implementation of new export controls that was was introduced last week. Shockingly, these newly introduced export controls have also disturbed the diplomatic ties with Washington. General Administration of Customs of China stated that China, known as the world’s largest exporter of rare earth, actually sold 4,000.3 tonnes of rare earths in September, a decrease 30.9% from August. It marks the lowest level since February.
Data on Rare-earth exports is aggregate
Rare earths comprise 17 elements, and still the clarity is needed about what types of exports have fallen or which countries were severely affected, since the data given on Monday is aggregate. A perfect picture will be released on October 20.
Rare-earth export controls: Response to the imposition of US tariffs
Notably, China’s rare-earth exports dropped sharply in April after it imposed export controls in response to the imposition of US tariffs by the Trump-led administration. However, shipments recovered steadily until June, when they hit an all-time high. Even after that, they have dropped every month since then.
China announced further export controls on rare-earth technologies, stating that unnamed foreign firms are using its supplies for military purposes. The Ministry of Commerce, China, said that it would impose restrictions with immediate effect on Rare-Earth exports. In response to the Chinese export controls on rare earth minerals, US President Donald Trump said on Friday that the United States could impose export controls on Boeing plane parts.