China's exports of rare earth products, including magnets, reached a six-month high in July 2025, marking a recovery following months of supply restrictions amid trade tensions with the United States. Export volumes rose 69% to 6,422 tons, with rare earth magnet exports to the US surging nearly 75% month-over-month to 619 tons in July, up from 46 tons in May and 353 tons in June. Germany and Vietnam were also top destinations for these exports. This increase follows a trade truce between Beijing and Washington, leading to a normalization of exports. Concurrently, China has introduced new interim regulations to tighten control over the rare earth mining, smelting, and separation industry. These regulations, issued by three government departments and effective immediately, include stricter licensing requirements, enhanced environmental standards, and mandatory establishment of product tracking systems. Enterprises must upload monthly product flow data to a national traceability platform managed by the Ministry of Industry and Information Technology. The new rules aim to regulate total production volumes and centralize oversight, reflecting China's intent to maintain dominance in the rare earth sector amid ongoing trade negotiations with the US. Additionally, China's rare earth prices have surged above 100,000 yuan per ton, boosting sector valuations and profits. The regulatory tightening also covers imports of US rare earth ore, which surged in July.