China’s export of rare earth products fell to a five-year low in May due to export restrictions imposed by Beijing in early April.
These restrictions require exporters to obtain special licenses for seven medium-to-heavy rare earth elements and certain magnets, which are critical for industries such as automotive, aerospace, semiconductors, and defense globally.
The volume of rare earth products fell by 61% in May from a year earlier, according to calculations by Bloomberg News based on Chinese customs data.
Export volume fell 53% from April, following a similar halving of shipments in April from March, dropping to the lowest monthly total since February 2020.
China produces over 90% of the world's permanent rare earth magnets. The export curbs have disrupted global supply chains, with automakers in the US, Europe and India warning that shortages of rare earth magnets could disrupt production lines within weeks.
China announced plans to expedite export license approvals following a US-China agreement to ease trade tensions.