China's downstream rare earth companies have slowed production and operation activities this year due to COVID-19, said the Ministry of Commerce on Thursday, when commenting on the drop in the country's rare earth exports in the first seven months.

"Chinese companies carry out global trade business based on changes in the international market demand and risk conditions," ministry spokesman Gao Feng said.

China exported 22,800 metric tons of rare earth between January and July this year, dropping 20.2 percent year-on-year according to customs statistics.

In the meantime, the value of China's rare earth exports declined 26 percent on a yearly basis to $211 million.