Up 56.1% from Previous Month
Exports Rebound After Steep Decline Since January
"China Redesigns Export Licensing System"
On the 30th of last month, U.S. President Donald Trump (left) and Chinese President Xi Jinping shook hands after concluding the U.S.-China summit at Naraemaru within the Busan Air Force 5th Air Mobility Wing. Photo by Yonhap News
China's exports of rare earth magnets to the United States reached their highest level in nine months. It appears that Chinese authorities have eased export restrictions following the tariff war truce agreement reached at the U.S.-China summit held in Busan last month.
According to Reuters and the South China Morning Post (SCMP) on the 21st, the General Administration of Customs of China announced that the country's exports of rare earth magnets to the U.S. in October amounted to 656 tons. This represents a 56.1% surge from the previous month's 420.5 tons and is the largest volume since January this year.
China's exports to the U.S. exceeded 800 tons in January, but plummeted to around 400 tons in February and have since remained below 600 tons. The only months when exports surpassed 600 tons were July and October. As China responded to the U.S.'s high tariffs by leveraging rare earth export controls, export volumes decreased.
Last month, the United States accounted for 12% of China's total rare earth magnet exports, making it the second-largest buyer after Germany (1,119 tons). South Korea ranked third with 569 tons, followed by Vietnam (444 tons), India (416 tons), and Japan (226 tons). Exports to the European Union amounted to 2,060.3 tons, a 16.3% decrease from the previous month.
When including destinations other than the United States, China's total rare earth magnet exports in October were tallied at 5,473 tons. This is a 5.2% decrease from the previous month's 5,774 tons, but a 15.8% increase year-on-year. Cumulatively (January to October), the total reached 45,290 tons, a 5.2% decrease compared to last year.
China's rare earth magnet exports hit a yearly low of 1,238 tons in May, but rebounded after the U.S.-China trade agreement, reaching a yearly high of 6,146 tons in August. Since then, exports have declined for two consecutive months through October.
Earlier this month, China announced that it would suspend rare earth export control measures for one year. This action follows the pledge to ease trade tensions at the U.S.-China summit held in Busan at the end of October.
Reuters, citing sources, reported, "China has recently begun redesigning its rare earth export licensing system, which could somewhat accelerate the pace of exports." However, the report added, "It is unlikely to reach the level of a 'full rollback' of regulations that Washington is hoping for."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
