China's Rare Earth Exports to U.S. Rebound While Controls on Japan Continue to Tighten
Nashnova编辑部
China shipped 29 tonnes of yttrium oxide and 647 tonnes of rare-earth magnets to the U.S. in July — both the second-highest monthly totals since export controls began in April 2025 — while dysprosium and terbium to Japan remain cut off for over eight months.
Why did U.S.-bound shipments suddenly pick up?
Customs data show China exported 29 tonnes of yttrium oxide — a critical feedstock for aerospace superalloys — to the U.S. in July, the second-highest month since controls took effect in April 2025.
Rare-earth permanent-magnet exports hit 647 tonnes the same month, also the second-highest since the controls.
This means → the timing is not coincidental. The rebound aligns with President Xi Jinping's planned September visit to the White House for trade talks — the shipments carry a clear diplomatic signal.
Why does yttrium oxide matter so much?
Yttrium oxide is essential for the superalloys and thermal-barrier coatings used in jet engines. China is the world's dominant supplier.
When Beijing folded yttrium into its broader rare-earth export controls in April 2025, markets briefly feared a fresh rare-earth crisis.
In plain terms = without yttrium, engine turbine blades cannot withstand operating temperatures — and almost all of it comes from one country.
Why is the picture for Japan completely different?
July marked the ninth consecutive month with zero Chinese exports of dysprosium oxide to Japan, and the eighth straight month without terbium oxide — both vital for high-performance magnets.
This reflects a direct diplomatic fallout: Reuters reported that after Prime Minister Takaichi Sanae's remarks on Taiwan last November, China's Commerce Ministry imposed restrictions citing "national security" and Japan's "remilitarization."
The scope keeps widening — dozens of Japanese defense-linked firms, including Mitsubishi Heavy Industries' shipbuilding and aero-engine divisions, have been added to the control list.
How badly is Japan affected?
Japan was once one of the world's largest buyers of Chinese rare earths and strategic metals. Today, imports of yttrium, terbium, gallium, and dysprosium are almost entirely severed.
This means → Japan's supply chains for high-performance magnets and semiconductor materials are being forced to find alternatives, but there is no viable substitute for Chinese supply in the near term.
Can this two-track approach last?
Beijing's split posture — opening the tap for the U.S. while keeping Japan locked out — amounts to using rare earths as a differentiated diplomatic lever.
In plain terms = whoever is at the negotiating table gets the shipments; whoever crosses a diplomatic red line gets cut off.
Whether this holds depends on substantive progress in U.S.–China trade talks — if the September summit fails to produce results, the export window for the U.S. could tighten again at any time.
Content is for reference only, not financial advice.