China's rare earth magnet exports in May saw a significant decline, with a notable drop in exports to the United States.

Gate News bot reports that according to Bloomberg, in May, China's rare earth magnet exports further declined, with a particularly significant drop in exports to the U.S., mainly due to the China-U.S. trade war.

Since early April, when China implemented export controls in retaliation for the United States imposing punitive tariffs on Chinese goods, rare earth minerals and their related products have been the focal point of the disputes between the two countries. Since then, both countries have sought to restart relations and ultimately held a meeting in London in early June, where U.S. President Donald Trump announced that the rare earth issue had been resolved.

China accounts for about 90% of the global rare earth products, most of which are magnets. Whether China allows rare earth supplies to flow more freely after reaching an agreement in London will become the focus of attention for governments and markets around the world in the coming weeks and even months.

Data released by Chinese customs on Friday particularly highlighted the impact on the supply of rare earth magnets. Rare earth magnets are crucial for high-tech industries ranging from automotive manufacturers to defense contractors. These regulatory measures have affected sales in all countries, with China's total exports in April being roughly halved, and then halved again in May, down to 1,238 tons.

A total of approximately 60 million US dollars, which is the lowest month of data since 2015 (excluding February 2020 and the outbreak of the pandemic).

In May, the United States imported only 46 tons of magnets, less than one-tenth of the import volume in March. Other countries, including Vietnam and Germany, which host several Chinese enterprises, have much better supply situations. These two countries were the largest export destinations last month, accounting for 19% and 17% of sales, respectively.