China Boosts Yttrium Oxide Exports to US Jet Engine Makers

China significantly increased its yttrium oxide exports to the United States in July, reaching 29 tonnes. This volume marks the second-highest monthly total recorded since export controls were implemented in April 2025.

This surge provides potential relief for American aerospace companies, which rely on yttrium for critical components like aircraft engines and heat-protective coatings. The development occurs prior to a scheduled September meeting between Chinese President Xi Jinping and US officials, underscoring the role of rare earth controls in the US-China trade relationship.

Beyond yttrium oxide, China’s exports of rare earth permanent magnets to the US also remained robust, with 647 tons shipped in July. The April 2025 date indicates the start of the export control period impacting these commodities.

Despite the increase in yttrium shipments, China’s broader rare earth export policy remains uneven. The nation continues to restrict strategic rare earth supplies, specifically dysprosium oxide and terbium oxide, to Japan.

These restrictions against Japan are attributed to national security concerns and Japan’s alleged “re-militarization.” Such actions highlight China’s maintained control over global strategic rare earth supply chains, even with targeted increases for certain materials.

While the July yttrium shipments offer a short-term reprieve for the US aerospace sector, the broader landscape of rare earth trade continues to reflect China’s strategic leverage. This dynamic remains a key element in the US-China trade relationship.