China's Yttrium Exports to US Rise Sharply Amid Ongoing Curbs

China's exports of yttrium, a rare earth element crucial for the U.S. aerospace and defense industries, rose sharply in July, according to official customs data. The increase provides a potential reprieve for American manufacturers amid broader export controls imposed by Beijing in April 2025.

Shipments Rise Ahead of Diplomatic Talks

China shipped 29 metric tons of yttrium oxide to the United States in July, Chinese customs data released Thursday showed. The figure represents the second-highest monthly volume since Beijing implemented the export control regime, which had stoked fears of a supply crisis for key industries.

The timing of the increased shipments is notable, as they precede a planned visit by Chinese President Xi Jinping to the White House for trade negotiations in September. Yttrium is a key component in specialty alloys for jet engines and in thermal barrier coatings that protect against extreme temperatures.

Contrasting Curbs on Japan

The rising exports to the U.S. stand in stark contrast to China's continued restrictions on shipments to Japan. Beijing has all but cut off Tokyo from supplies of yttrium and other strategic materials, including terbium, gallium, and dysprosium, since a diplomatic dispute over Taiwan that began in November.

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China's commerce ministry has cited national security as its justification for the curbs on Japan. The customs data highlights the extent of the restrictions:

• July marked the ninth consecutive month of zero dysprosium oxide exports to Japan.
• It was also the eighth straight month with no terbium oxide shipments.

Market Implications

Beyond raw materials, the data also showed a strong flow of related finished products. China exported 647 tons of rare earth permanent magnets to the U.S. in July, also the second-largest monthly total since the controls were enacted.

The figures underscore China's dominant position in the global rare earths supply chain. For investors and corporations, the divergent export policies toward the U.S. and Japan illustrate how Beijing can use its control over these critical materials as a potent diplomatic tool, creating supply chain uncertainty for dependent nations.