Magnetic material enterprises export restrictions may be gradually lifted

Against the backdrop of easing trade tensions between the United States and China, China's restrictions on the export of magnetic materials (magnets) are gradually being eased, bringing new hope to the global supply chain. A number of recent policy adjustments indicate that export restrictions for magnetic material companies are expected to be further lifted in the coming months.

On May 14, 2025, China announced a 90-day suspension of its “non-reliable entity list” restrictions on 17 U.S. entities, as well as its export control measures on 28 U.S. companies. The move was part of a trade agreement reached between the U.S. and China in Geneva to ease trade tensions between the two sides. Previously, the U.S. imposed tariffs of up to 145 percent on Chinese goods, while China imposed tariffs of 125 percent on U.S. goods. Under the new deal, both sides agreed to reduce tariffs on most goods to 30 percent and 10 percent, respectively, for three months to facilitate further negotiations.

Customs Response to Magnet Export Issues

Prior to this, China had begun to reinstate some of its export licenses for rare earth magnets.2025 In late April, four Chinese companies, including Baoji Tianhe Magnetics, Zhongke Sanhuan, Baotou INST Magnetics, and Anhui Earth-Panda Advanced Magnetics, received export licenses for rare earth magnets. The licenses are aimed at customers in Europe and Vietnam, particularly suppliers to Volkswagen. Although these licenses were issued prior to the U.S.-China trade agreement, they provide a positive signal for U.S. companies to obtain similar licenses in the future.

Magnetic materials play an important role in a number of key areas such as new energy vehicles, wind power, defense and electronics. China dominates the extraction and processing of rare earth elements, so its export policies have a profound impact on the global supply chain. With the gradual lifting of export restrictions, global manufacturers, especially those relying on Chinese magnetic materials, will benefit from stabilized supply chains and lower costs.

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