China approved large exports of rare earth vital for US aerospace in March

China exported large quantities of a specialty rare earth used ‌in aerospace and chipmaking to the US ‌in March, customs data showed, in a sign that tight controls ​which have caused shortages and record prices could be easing.

The 60-ton shipment of yttrium oxide is 50% larger than all the yttrium shipped to the US since ‌China imposed export ⁠controls on several rare earths last April at the height of the trade war ⁠with Washington.

While most rare earth exports resumed after a trade truce late last year, yttrium shipments were largely ​stuck, causing ​shortages and production stoppages ​for aerospace and semiconductor ‌firms.

Prices rose 6,900% in the 12 months to February and several affected companies lobbied Washington to resolve the issue.

Yttrium oxide is used to make coatings that protect jet engines and power station turbines from high ‌temperatures.

Aircraft need such coatings to fly ​and analysts say the close ​ties between aerospace ​and defence may have contributed to Beijing’s ‌reluctance to okay exports.

Even after ​the March ​shipment, yttrium oxide exports to the US over the past 12 months are down 75% from ​the year earlier.

There ‌were no shipments of other yttrium compounds or ​metals in March.

(By Lewis Jackson; Editing by Mark Potter)