China rare earth exports to US fall 21% in August ahead of Trump-Xi summit

September 22, 2026 at 10:00 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

China's rare earth shipments to the United States fell 21% in August to 512 tons, according to customs data released Sunday. The decline comes as President Xi Jinping and President Donald Trump prepare to meet in Washington on Thursday, with rare earths and AI safety on the agenda.

Key Facts

China's rare earth shipments to the US dropped 21% in August to 512 tons, according to customs data released Sunday.
President Xi Jinping and President Donald Trump are scheduled to meet in Washington on Thursday.
China controls more than 95% of global critical material refining, according to Barclays' global head of economics research Christian Keller.
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng discussed rare earths and advanced AI bots ahead of the Trump-Xi summit.

Trade Data

Customs data released Sunday showed rare earth shipments from China to the US plunged sharply in August, falling 21% from July to 512 tons. The decline leaves US supplies of components used in cars, consumer goods, and weapons as a key talking point in upcoming discussions. Bloomberg Economics' Chris Kennedy said Washington needs stability with Beijing to keep these critical inputs moving.

Summit Context

UBS analysts quoted chief China economist Yu Song as saying the meeting between the two leaders is largely about strategic stability and modest progress on tariffs, rare earths, and AI safety. Political risk analyst Marcus Bischoff expects no major breakthrough but sees continuity in US-China relations as the most likely outcome. Over the weekend, a Reuters report said Bessent and He Lifeng were set to discuss advanced AI bots and the global adoption of the technology, as well as rare earths.

Supply Chain Leverage

China's near-total control of more than 95% of critical material refining has been used as leverage against the US, according to Barclays' Christian Keller. Beijing has restricted flows of magnets, tungsten, germanium, gallium, and other critical materials over the last year and a half, forcing the US into a sprint to secure conflict-free supplies. Barclays' Keller shows Beijing will control mineral mining and global refining of these materials through at least 2030.