China Restricts Rare Earth Exports to Japan Following Dual-Use Ban

China has begun tightening controls on exports of rare earths and related magnets to Japanese companies, according to a report by the Wall Street Journal.  

The development follows Beijing’s decision this week to ban exports of certain dual-use items to Japan’s military, signalling a tougher stance on trade linked to security concerns. 

Restrictions Reportedly Wider in Scope 

The Journal said the export curbs are being applied across Japanese industry and are not limited to defence-related firms.  

Since Tuesday, shipments of “heavy” rare earths and magnets made from them have faced restrictions, the report said, citing exporters in China. These materials are used across sectors ranging from automobiles to electronics. 

Position Taken by Chinese Authorities 

China’s commerce ministry has said the ban on dual-use exports to Japan only affects military firms. He Yadong, a ministry spokesperson, said civilian users would not be impacted.  

China’s foreign ministry also defended the measures, calling them legitimate and lawful, and said the country’s approach to maintaining stable global supply chains had not changed. 

What Counts as Dual-Use Goods 

Dual-use items are products, software or technologies that can serve both civilian and military purposes. Rare earth magnets fall under this category and are used in motors found in car parts such as side mirrors, speakers and oil pumps.  

China maintains an export control list of around 1,100 dual-use items and technologies that require licences for overseas shipment. 

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Conclusion 

It remains unclear how long the restrictions will last or how broadly they will be applied. While Chinese officials say the measures target military use, reports of stalled licence reviews point to possible disruptions for Japanese firms dependent on rare earth supplies. 

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