Chinese shipments of rare earth magnets to the US fell to 512 tonnes in August 2026, down 13% from the same month last year and 20% from July, according to Chinese customs data. The decline occurs ahead of the Trump-Xi summit in Washington, with rare earths crucial to high-end manufacturing expected to be a point of friction. China, the world's largest producer, has used access to rare earths as leverage since Trump's 2025 tariffs, though supplies rebounded from May's low of 46.4 tonnes. Prices remain elevated and industry groups fear further chokepoints threatening production from cars to fighter jets.

US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng met in New York ahead of the summit, discussing a trade truce extension and AI dialogue mechanisms. Analysts at Capital Economics note Chinese rare earth exports to the US are falling at the fastest pace since the pandemic, suggesting Beijing is testing truce limits by slowing licence approvals selectively.

The US and Europe are accelerating efforts to build non-Chinese rare earth supply chains, though analysts warn significant shifts are years away. China has also restricted exports to Japanese firms after Prime Minister Sanae Takaichi's Taiwan comments, while exports to Germany fell 22% year-on-year in August.