China suspended exports of several
critical minerals, including rare earth elements and rare metals, to Japan from
January 2026
¨
China suspended exports
of several critical minerals, including rare earth elements and rare metals, to
Japan from January 2026.
¨
The restrictions affected
materials used in the defence, automotive, electronics, and aerospace sectors.
¨
The move followed
diplomatic tensions after remarks by Japanese Prime Minister Sanae Takaichi in
November 2025 regarding a possible Taiwan contingency.
¨
Rare earth elements
(REEs) are a group of 17 chemically similar elements, including the
lanthanides, scandium, and yttrium.
¨
Dysprosium, terbium,
yttrium, and scandium are widely used in high-performance permanent magnets,
electric vehicles, wind turbines, lasers, and aerospace components.
¨
China accounts for over
90% of global rare earth magnet production and refining.
¨
Gallium, dysprosium,
terbium, and yttrium are among the minerals whose exports to Japan have been
restricted since early 2026.
¨
On 6 January 2026,
China's Ministry of Commerce announced export restrictions on rare earth
elements and rare earth magnets.
¨
In February 2026, China
tightened export controls on dual-use goods involving 20 Japanese companies.
¨
It also placed 20
additional Japanese companies on a watch list.
¨
Dual-use goods are
products and technologies that can be used for both civilian and military
purposes.
¨
Rare earth elements are
not actually rare in the Earth's crust, but they are difficult and expensive to
separate and refine.
¨
Dysprosium and terbium
are essential for manufacturing heat-resistant permanent magnets.
¨
Japan and the United
States launched a Critical Minerals Action Plan in March 2026.
¨
China had previously
restricted rare earth exports to Japan in 2010 during the Senkaku/Diaoyu
Islands dispute.
