China’s rare earth exports to the United States rose to the second-highest monthly levels since Beijing imposed export controls in April 2025, data showed on Thursday, with yttrium oxide and rare earth permanent magnets shipping at volumes critical to aerospace and defense supply chains.
Exports of yttrium oxide to the U.S. totaled 29 metric tons in July, the second-highest monthly volume recorded since China introduced its export restrictions, according to trade flow data. Shipments of rare earth permanent magnets reached 647 tons, also the second-largest monthly volume since the controls took effect. The data reflects continued, though constrained, access to materials central to high-performance alloys and engine components used in aerospace and defense applications.
In contrast, exports of dysprosium oxide and terbium oxide to Japan remained at zero in July, marking the ninth and eighth consecutive months without shipments, respectively. The halt follows Beijing’s decision to tighten restrictions on rare earth and other strategic goods to Japan in November 2024, after comments by Japanese Prime Minister Sanae Takaichi regarding Taiwan prompted a diplomatic dispute. Beijing’s commerce ministry cited national security concerns and Japan’s perceived "re-militarization" as justification for the curbs, which expanded to include additional controls on dozens of Japanese defense-linked firms.
Yttrium, a rare earth element, is employed in specialty alloys for aerospace engines and high-temperature shielding coatings, making its supply a key factor in the sector’s operational continuity. The July shipments to the U.S. coincide with preparations for Chinese President Xi Jinping’s planned visit to the White House in September for trade negotiations, highlighting the intersection of supply chains and high-level diplomacy.
