China’s rare earth export volume has declined significantly since the beginning of this year, with a sharp drop of 69.1% in July compared with the same period of last year. 80% of the rare earths in the United States, which are more antagonistic to China, rely on China, and high-tech industries, including the military, also rely on China’s rare earths. If exports stagnate, or become a new fuse. China may also use it as a retaliation against the trump Administration (in the US market) for excluding Chinese companies.
according to the General Administration of customs, the export volume of rare earth in July was only 1620 tons, compared with 5243 tons in the same period of last year. The decline in exports became apparent after April. According to analysis, this is due to the global spread of Xinguan epidemic, which leads to the decline of foreign demand and the interruption of international logistics.
on the other hand, China positioned rare earth as a “strategic resource” and decided in April to set up a research center for research and development of new materials and applied technologies. This reflects the policy of not relying on exports, but on strengthening domestic industries.
the United States is pushing for an alternative supply of rare earths, which is said to be difficult to achieve in the short term. If the United States launches a new round of sanctions against China in the Sino US trade negotiations, China may also initiate rare earth export restrictions.