China signals possible rare-earth export curbs to Japan

Coded threats from China that it might restrict exports of rare earths to Japan have raised alarms across Japanese business and politics, signaling a sharp escalation in a monthslong geopolitical feud, according to reporting in The New York Times. China’s Ministry of Commerce said it would ban the export to Japan of all “dual-use” items with potential military applications, citing national security concerns, but the official announcement was vague on specific commodities.

Government-affiliated media said Beijing was considering whether to include certain rare earths, and the state-run China Daily reported authorities were weighing more stringent reviews for licenses to export so-called medium and heavy rare earths, which are used in products from electric-vehicle motors to missile systems.

A former head of the state-affiliated Global Times warned on social media that a suspension of shipments “would strike an exceptionally broad range of industrial sectors” and that “the possibility that anything could happen cannot be ruled out.” Analysts noted the move evokes a 2010 episode when exports were effectively halted for two months during a territorial dispute.

Yoshikiyo Shimamine of the Dai-ichi Life Research Institute said China is likely planning protracted screening that could amount to a de facto export ban, and that rare earths pose the most significant economic risk because they are essential to many products, including Japan’s car industry.

Key Topics

World, China, Japan, Rare Earths, Sanae Takaichi, Yoshikiyo Shimamine