China Sparks Global Concern with Reduced Rare Earth Magnet Exports
The global economy is once again facing heightened tension over critical resources such as rare earth magnets, which are vital components in modern technology, automotive manufacturing, and defense systems.
According to Reuters, China’s decline in the export of these minerals in September has raised widespread fears that the country might utilize its dominance in this sector as a bargaining chip in trade negotiations.
The initial export restrictions began in spring, when Beijing imposed limits on the export of strategic materials aimed at countering US tariffs that soared into triple digits.
Recent data indicate that China has recently ramped up its measures, increasing uncertainty in global markets.
Export figures show a 6.1% decrease in September compared to August, ending a three-month period of growth and signaling ongoing trade tensions.
Experts suggest that China recognizes its leverage in international trade negotiations and could reassert control to influence global supply chains.
The Chinese Ministry of Commerce has intensified license checks, similar to those seen during the peak of trade conflicts in April.
Despite these restrictions, annual exports increased by 17.5% in September.
A year ago, a deal between Washington and Beijing promised to ease some restrictions, but recent Chinese actions cast doubt on its implementation.
Major importing countries—Germany, South Korea, Vietnam, the US, and Mexico—remained primary recipients of Chinese rare earth magnets last month.
However, overall export volumes declined, reflecting increased geopolitical tensions.
US Treasury Secretary Scott Bessent accused China of intentionally destabilizing the global economy through strict export controls, emphasizing that such actions are aimed at strengthening China’s position in international relations.
Analysts warn that the world must adapt to these new realities, as China’s monopolistic control over critical resources could significantly shift the global power balance.