China's exports of rare earths, which it has weaponized as a strategic resource, are showing clear divergence in import trends depending on the destination country, the state-run China Daily reported on August 13.

According to a report released at the end of last month by the University of International Business and Economics in China, as of June this year, China's top three export markets for rare earths and related products were the United States (1,700 tons, 14.4% of total exports), Japan (1,600 tons, 14.2%), and the Netherlands (1,400 tons, 11.8%).

The recent narrowing of import volumes among these three traditional major importers of Chinese rare earths is due to sharp declines in imports by the U.S. and Japan, contrasted with a surge in imports by the Netherlands.

Citing data from China's General Administration of Customs, the report explained that China's rare earth exports to the U.S. decreased by 49% compared to the same period last year, while exports to Japan fell by 43.8%.

In contrast, exports to the Netherlands surged by 121.4% over the span of a year.

Rare earths refer to a group of 17 metallic elements widely used in the manufacturing of high-tech products.

According to the General Administration of Customs, China exported a total of 4,224 tons of rare earths last month.

Cumulative rare earth exports from January to July stood at 34,706 tons, down 10% from last year.

Some analysts suggest that while China is tightening its grip on overall rare earth exports centered around the U.S. and Japan—countries with which it is politically at odds—it may be loosening rare earth supplies for the Netherlands, a country with which cooperation is necessary in areas such as semiconductor equipment trade.

Citing Chinese scholars, China Daily explained that Chinese authorities are directly linking rare earths to security issues.

Ding Rujia, a professor of economics at China University of Mining and Technology, said, "China's management of critical minerals is gradually becoming rule-based and sophisticated, and the scope of control is expanding beyond individual products to technologies, equipment, supply chains, and other areas where security risks may arise."

Professor Ding noted that this approach will help strike a balance between the development and utilization of strategic mineral resources and national security, while providing a clearer regulatory framework for companies engaged in legitimate foreign trade.

Ying Pinguang, dean of the Institute of International Organizations at Shanghai University of International Business and Economics, explained, "Targeted export controls can reshape global rare earth supply and demand. This will prompt producers to allocate resources to higher-value uses, and overseas buyers to adjust their inventory and procurement strategies."

Dean Ying added that many Western countries have long maintained their own control lists for critical minerals, saying, "China's export control measures will help strengthen the supervision of strategic rare earth resources and bring such resource management more in line with global practices."