China's rare-earth magnet exports surge in November
What's the story
China's exports of rare-earth magnets, critical components for weapons, cars, and phones, reached the second-highest level on record in November. The country exported 6,150 metric tons of these specialized magnets last month. This is a 12% increase from October and the second-highest monthly export volume on record. The only month with higher exports was January when China exported 6,357 tons.
Trade restrictions
Trade war and its impact on rare-earth exports
In April, during the trade war initiated by US President Donald Trump, China had restricted the export of these specialized magnets. The move disrupted parts of the global supply chain. However, after a series of diplomatic agreements including one between Trump and Chinese leader Xi Jinping in October, China's export volumes have been gradually recovering.
Diplomatic impact
US-China agreement and its effects
The US-China agreement to streamline exports of rare-earth elements has had a major impact on China's export volumes. The deal was struck during a summit in South Korea, where Trump agreed to cut tariffs on Chinese goods in exchange for keeping rare earths exports flowing. This special category was created specifically to expedite shipments and has contributed significantly to the recovery of China's export volumes.
Export statistics
Rare-earth magnet exports to US and Japan
In November, China's rare-earth magnet exports to the US stood at 582 metric tons. This is an 11% decrease from last month but still within the average range since July. Meanwhile, exports to Japan, which is currently embroiled in a diplomatic spat with Beijing, surged by 35% to reach 305 metric tons, the highest this year.