Imports from Myanmar plummeted, general exports up on a “pre-tariff rush.”
China’s Customs Authority has released March trade data, revealing a notable increase in rare earth exports by the world’s leading producer. According to the report, China exported 5,666.3 tons of rare earths in March—an increase of approximately 20% compared to the same month last year.
On the import side, however, rare earth shipments into China plummeted by 42.2%, likely due to supply disruptions in Myanmar. The ongoing civil war and a recent earthquake have severely hampered mining activities there. Myanmar remains one of China’s most important sources of rare earth raw materials.
Rare earth exports up sharply in March
April Data Will Clarify the Underlying Reality
Looking at general trade data, China’s overall exports rose sharply in March. Citing official data, Reuters reported a year-on-year increase of over 12%, which analysts attribute to a “pre-tariff rush,” as exporters likely rushed out products ahead of sweeping reciprocal trade tariffs by the United States, which came into effect in early April. Under the policy, China faces the steepest rate of 145 percent.
China has responded to the measure with its own tariffs and imposed export controls on 7 of the 17 rare earth elements (we reported). As the export controls came into effect in early April, data for the month will reveal whether the exports spiked briefly or are part of a more sustained trend.
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