China's rare-earth exports to Japan stay at zero
Beijing's rare-earth curbs are selective. Japan is getting nothing, South Korea is getting more than ever, and the US is somewhere in between.
What happened
Silverado Policy Accelerator's monthly review of Chinese trade data found that August 2026 exports of export-controlled rare-earth compounds and metals stayed far below historical levels. Shipments to Japan were zero for the third month running, continuing the squeeze that began when China added Japan-specific restrictions in January.
In contrast, exports to South Korea ran above pre-control levels, making Korea China's biggest customer for these materials. Magnet exports overall have largely recovered — except to the US, the only major destination receiving fewer magnets this year than in 2024.
Our take
This is export control as foreign policy, applied country by country. China is rewarding and punishing specific trade partners rather than shutting the tap for everyone, which makes the supply picture very different depending on where your factory sits.
The US data has a subtle wrinkle: the number of magnets imported is rising even as total weight falls, suggesting buyers are shifting toward smaller magnets — possibly finished components rather than bulk material.
Why it matters for AI infrastructure
Neodymium-iron-boron magnets sit inside hard drives, cooling fans and the motors and generators of the power system. Japanese electronics and component makers are on the front line of this disruption.
What we're watching
- Whether Japan's exports stay at zero into Q4
- Korea's role as a possible re-export route
- US magnet import volumes as new domestic magnet plants come online