China’s exports of rare-earth magnets to the European Union surged in August, underscoring the bloc’s heavier reliance on Chinese supply compared with the US and its exposure to trade tensions between Washington and Beijing, reports Bloomberg. Shipments to the EU rose 21% from July to 2,582 tons, according to Chinese customs data on Saturday, taking year-to-date volumes to more than three times those of the US. In contrast, exports to the US fell 5% on-month to 590 tons.
Rare-earth magnets that are essential for electric vehicles, wind turbines, and military hardware became Beijing’s most potent weapon in the standoff with Washington earlier this year. While a call between President Donald Trump and Chinese leader Xi Jinping on Friday signaled that tensions continue to ease, concerns remain over China’s dominance of about 90% of global magnet output.
The EU’s outsized dependence has left its industries particularly exposed. Even with the recent rebound, the earlier supply crunch continues to ripple through the bloc. EU companies incurred seven production stoppages in August and an additional 46 are expected this month, the EU Chamber of Commerce in China said on Thursday.