China’s shipments of rare-earth magnets to the US and the European Union dropped in September, before Beijing escalated tensions by ramping up export curbs amid stormy trade talks between the world’s top two economies, reports Bloomberg. Exports to the US of the tiny but powerful magnets fell for a second month to 421 tons, down from 590 tons in August, according to Chinese customs data. Volumes to Europe slid to 2,461 tons, from 2,582 tons. The data followed separate release on Saturday that showed a retreat for all rare earth products, a category dominated by magnets.
Rare-earth magnets—essential for electric vehicles, wind turbines, and military hardware—have become Beijing’s most potent weapon in the standoff with Washington.
In April, Beijing turned up pressure on the US by putting export curbs that threatened a damaging global shortage. Then, earlier this month, China announced plans to dramatically expand the scope of its export controls, which it says are aimed at preventing supplies to defense industries worldwide.