Chinese exports of rare earth yttrium to the United States rose in July, customs data from the world’s second-largest economy showed on August 20, possibly giving some reprieve to American aerospace buyers who depend on the material for critical aviation applications.
China, the main source nation of the element used in specialty alloys found in aero engines as well as coatings to shield against high temperatures, restricted exports of yttrium along with other rare earths in April 2025, sparking fears of a new rare earth crisis.
However, the country’s July exports to the United States of 29 metric tons of yttrium oxide became the second-highest since Beijing introduced export controls on the critical raw materials, often seen by analysts as a geopolitical tool employed by the Xi Jinping administration to extract leverage from the countries.
The shipments come as Xi prepares to visit the White House for trade talks later in September.
While China increased the supply of yttrium to the United States, staying true to its principle of using export control as a potent diplomatic tool, Beijing kept the deliveries of rare earths and other strategic goods to Japan tightly constrained.
Japan, once among the world’s largest buyers of Chinese rare earths and strategic metals, has been all but cut off from exports of yttrium, terbium, gallium, and dysprosium since Japanese Prime Minister Sanae Takaichi sparked a diplomatic spat with China with remarks over Taiwan in November 2025.
Beijing’s commerce ministry cited national security and Japan’s “re-militarization” as justification for the curbs, apart from placing extra controls on dozens of Japanese defense-linked firms, including the shipbuilding and aero engine divisions of Mitsubishi Heavy Industries.
July was the ninth month in which China sent Tokyo no dysprosium oxide and the eighth for terbium oxide. Both are used in tiny quantities in high-performance magnets.
It has, however, continued to export substantial volumes of rare earth permanent magnets. The 647 tons of these items Beijing’s export to the United States in July was the second-largest monthly volume since export controls came into effect.