Ahead of US trade talks, China’s rare earth trade data from May sends a message

In a reflection of Beijing’s ability to quickly leverage its dominance over the critical-mineral supply chain, the value of rare earth elements exported by China last month plunged by nearly half compared with a year prior.

The official data came as analysts have been saying that China’s export controls over large quantities of critical minerals are like the ultimate trump card in trade negotiations with the United States.

The world’s second-largest economy exported rare earth elements worth US$18.7 million last month, marking a yearly drop of 48.3 per cent, according to figures released on Monday by the General Administration of Customs. The data included exports of all kinds of rare earth elements, not just the ones on which Beijing has imposed controls.

May’s value also represented a 13.7 per cent monthly decline, from US$21.7 million in April.

In terms of weight, 5,864.6 tonnes of rare earth elements were shipped from China in May – a year-on-year decline of 5.67 per cent that ended three consecutive months of yearly export growth since February, according to the data, compiled by financial data provider Wind.

Still, the cumulative amount of exported rare earths in the first five months stood at 24,827 tonnes, 2.3 per cent higher than the same period last year.