China Halts Rare Earth Exports to Japan
China has confirmed it suspended exports of certain rare earth products to Japan, with the Foreign Ministry stating the move is a lawful measure aimed at preventing Tokyo’s “re-militarization and nuclear ambitions.” The announcement, made by spokesperson Mao Ning on May 25, marks the most significant escalation yet in the deepening diplomatic crisis between Asia’s two largest economies.
Speaking at a regular press briefing, Mao Ning said China had lawfully prohibited exports of dual-use items to Japanese military users and for military purposes, according to The Paper. The Chinese Foreign Ministry transcript confirmed her statement that the purpose was to “stop Japan’s re-militarization and nuclear ambitions.”
A Crisis Months in the Making
The export suspension is the culmination of a diplomatic crisis that erupted in November 2025 after Japanese Prime Minister Sanae Takaichi stated in the Diet that a Chinese attack on Taiwan could constitute an “existential crisis” for Japan under the country’s Legislation for Peace and Security. The remark, which Beijing labeled “provocative,” triggered a cascade of retaliatory measures.
China initially responded with diplomatic protests, live-fire military exercises in the Yellow Sea, and coast guard patrols near the disputed Senkaku/Diaoyu Islands. In December, tensions escalated further when Chinese and Japanese vessels engaged in a standoff near the islands, and China accused Japanese fighter jets of locking fire-control radar on its aircraft.
Export Controls Codified
On January 6, 2026, China’s Ministry of Commerce issued Announcement No. 1, formally banning exports of approximately 1,100 dual-use items to Japanese military end-users, as CNBC reported. The measures cover seven categories of medium and heavy rare earths — including samarium, gadolinium, terbium, dysprosium, and lutetium — as well as rare earth permanent magnets critical for defense applications.
According to a legal analysis by Greenberg Traurig, the restrictions are anchored in China’s Export Control Law (2020), the Regulations on the Export Control of Dual-Use Items (2024), and the Anti-Foreign Sanctions Law. The measures carry extraterritorial reach, holding third-party entities liable for facilitating transfers of Chinese-origin dual-use items to Japan.
Japan called the ban “absolutely unacceptable and deeply regrettable,” demanding its immediate withdrawal.
Rare Earths as a Geopolitical Weapon
China’s dominance of the global rare earth supply chain gives this move particular weight. Beijing controls approximately 60% of global mining, 85% of processing, and more than 90% of magnet production. Despite over a decade of diversification efforts, Japan still relies on China for roughly 60% of its rare earth imports, according to Capital Economics.
As Foreign Policy noted in its analysis ahead of the Trump-Xi summit, rare earths represent one of China’s most potent trade war tools. Heavy rare earths like dysprosium and terbium are essential for permanent magnets used in precision-guided munitions, missile guidance systems, and — critically — uranium enrichment centrifuges.
“Japan in a way is a cautionary tale,” Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies, told Foreign Policy. “Since 2010, they have continuously worked to create that resilience and leverage strategic funding and offtake and partnerships — but at the same time, they still remain highly impacted by Chinese export controls.”
Japan’s Response and Diversification Efforts
Japan has been racing to reduce its dependence on Chinese rare earths since Beijing’s 2010 embargo during a previous territorial dispute. Tokyo has invested in Australian and Vietnamese mining projects, stockpiled critical materials, and pursued deep-sea mining exploration. The December 2025 defense budget — a record 9 trillion yen ($58 billion) — included provisions for supply chain security.
In a concrete sign of industrial response, Japanese firm ULVAC announced in May that it would move production of rare earth magnet equipment from China back to Japan, as Asia Times reported. The move represents a strategic shift in the global rare earth supply chain.
Broader Implications
The rare earth suspension comes amid a broader transformation of Japan’s security posture under Prime Minister Takaichi. She has proposed revising Japan’s three non-nuclear principles, lifting arms export restrictions, and aggressively developing offensive military capabilities. People’s Daily, the official Chinese state newspaper, warned in January that these plans signal “Japan’s dangerous shift toward remilitarization.”
China’s UN Ambassador Fu Cong has repeatedly warned against the “resurgence of Japanese militarism” at the United Nations, while Chinese customs data shows rare earth magnet exports to Japan have largely ceased since January.
What to Watch
The duration of the suspension remains unclear — China has not announced an end date. The measures could accelerate the global diversification of rare earth supply chains, potentially eroding China’s long-term dominance. However, analysts caution that building alternative supply chains will take years, leaving Japan and its allies vulnerable in the near term.
With the crisis now entering its seventh month and showing no signs of de-escalation, the rare earth suspension represents a new phase in China-Japan relations — one where economic interdependence has become a weapon of statecraft.