China rare earth magnet exports to US drop before Xi-Trump meet
These components, used in everything from cars to consumer goods, give Beijing leverage in trade
China's rare earth magnet exports to the US declined by 21% in August compared to July, according to Chinese customs data released on September 20. The UK's Bloomberg Economic notes that these magnets are critical components used in a variety of goods, giving China substantial leverage in trade negotiations. The US President Donald Trump and Chinese leader Xi Jinping are set to meet in Washington, D.C. on Thursday, aiming to discuss various aspects including trade, artificial intelligence, and the flow of critical minerals.
China is reportedly considering issuing more licenses for rare earth exports as leverage in these talks, though it has not disclosed what it may demand in return. US Trade Representative Jamieson Greer recently gave China a "passing grade" for maintaining critical mineral flows, and US Treasury Secretary Scott Bessent has urged China to fulfill its commitments.
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