Data from a report released Thursday by the Brazil-China Business Council (CEBC) indicates a 7.5% decrease in Brazil’s total exports to China, amounting to $47.7 billion (approximately €41 billion) compared to the same period in 2024.
However, imports of Chinese products increased by 22%, reaching $35.7 billion (€30.5 billion), reducing Brazil’s trade surplus with China to $12 billion (€10.3 billion) — the lowest since 2019 and half of that recorded in 2024.
This trend coincides with a widespread increase in Chinese exports of rare earth elements, reaching their highest levels since December 2009, totaling 7,742 tons in June — a 60% rise compared to the same month in 2024, according to Chinese customs data. Compared to May, the growth was 32%.
Analysts view this jump as a potential reflection of discreet understandings with the United States regarding the flow of critical minerals, following a series of negotiations in Geneva and London.
In June, the American newspaper Wall Street Journal reported that China began issuing six-month export licenses to selected American manufacturers.
In April, Beijing imposed new controls on seven rare earth minerals and magnets in response to tariff packages and restrictions enacted by Washington, in an effort to strengthen control over this strategic supply chain.
Despite the increase in volume, the total value of Chinese exports of rare earths fell by 47% year-on-year, which, according to economist Xu Tianchen of the Economist Intelligence Unit, reflects changes in the composition of exported products — more low-value elements and fewer high-value ones.
Xu also noted that customs controls were particularly strict in April and May.
Exports of rare earths have become a central theme in international trade, given their significance for sectors such as automotive, aerospace, semiconductors, and defense.
China holds the majority of global production and refining capacity for these minerals.
The normalization of exports of medium and heavy, more valuable elements, which are subject to greater restrictions, is expected to take longer, Xu warned, as Beijing continues to require specific licenses and strict checks concerning their purpose.
The data available so far does not specify which product categories were covered by the increase in exports. A clearer picture is expected to emerge on Sunday when the Chinese government releases more detailed statistics.
