Key facts
- China's exports of yttrium oxide to the U.S. reached 29 metric tons in July.
- This July volume was the second-highest since China implemented export controls on rare earths.
- China also exported 647 tons of rare earth permanent magnets to the U.S. in July.
- Exports of yttrium, terbium, gallium, and dysprosium to Japan remain significantly constrained.
- Beijing cited national security and Japan's "re-militarization" as reasons for export restrictions to Japan.
China's exports of yttrium oxide to the United States saw a notable increase in July, potentially easing supply concerns for U.S. aerospace manufacturers that rely on the material for critical components. Customs data revealed that 29 metric tons of yttrium oxide were shipped to the U.S., marking the second-highest volume since China imposed export controls on rare earths in April 2025.
These shipments arrive as Chinese President Xi Jinping is scheduled to visit the White House for trade discussions. China dominates global rare earth production and has previously utilized export controls as a diplomatic leverage. In contrast, exports of yttrium and other strategic materials to Japan remain severely restricted. Japan has faced significant cutbacks in shipments of yttrium, terbium, gallium, and dysprosium since a diplomatic dispute arose in November.
Beijing has justified these curbs by citing national security and Japan's alleged "re-militarization," extending controls to Japanese defense-linked firms, including Mitsubishi Heavy Industries' shipbuilding and aero engine divisions. July marked the ninth consecutive month without dysprosium oxide exports to Japan and the eighth for terbium oxide, both essential for high-performance magnets. However, China continued to export substantial volumes of rare earth permanent magnets, with July's U.S. shipments of 647 tons being the second-largest monthly total since the controls were enacted.