China's rare earth magnet exports to Japan decreased by 34% in May

Trade data released by China's General Administration of Customs show that in May, exports of rare earth magnets to Japan decreased by 34.6% month-on-month, falling to 123 tons, marking the lowest level since May 2025, when exports sharply declined due to China's strengthened export controls amid U.S.-China trade tensions. The impact of the export controls on dual-use military and civilian items initiated by the Chinese government in January is believed to still be ongoing. China's rare earth magnet exports have been below 200 tons for three consecutive months. In May, overall global exports decreased by 7.7%, with Japan experiencing an especially significant drop. Additionally, exports to the United States also declined by 7.7%. The list of dual-use military and civilian items still includes rare metals, and related products like tungsten carbide continued to have zero exports to Japan after April. The Chinese Ministry of Commerce stated that civilian use is unaffected by the export controls. However, the China-Japan Chamber of Commerce, composed of Japanese-funded enterprises in China, pointed out that trade in some daily necessities has been affected and called for clear implementation standards.