China suspended Japan-bound exports of several critical minerals, including rare earths and rare metals, from January 2026. The restrictions covered materials used in defence, automotive, electronics, and aerospace supply chains, and they followed diplomatic tensions linked to remarks by Japanese Prime Minister Sanae Takaichi in November 2025 on a possible Taiwan contingency.
Rare Earth Elements and Their Uses
Rare earth elements are a group of 17 chemically similar metals that include the lanthanides, scandium, and yttrium. Dysprosium, terbium, yttrium, and scandium are used in high-performance permanent magnets, electric vehicles, wind turbines, lasers, and aerospace components.
China’s Role in Global Supply Chains
China controls over 90% of global rare earth magnet production and refining. Gallium, dysprosium, terbium, and yttrium are among the minerals that have faced export throttling in trade flows to Japan since early 2026.
Export Controls and Dual-Use Goods
China’s Ministry of Commerce announced export restrictions around 6 January 2026 on rare earth elements and rare-earth magnets. In February 2026, China tightened controls on dual-use goods for 20 Japanese companies and placed 20 other companies on a watch list.
Important Facts for Exams
- Rare earths are not rare in the Earth’s crust, but they are difficult to separate and refine.
- Dysprosium and terbium are important for heat-resistant permanent magnets.
- Japan and the United States launched a critical minerals action plan in March 2026.
- China restricted rare earth exports to Japan in 2010 during the Senkaku/Diaoyu Islands dispute.
Japan’s Supply Chain Dependence
Japanese automotive, electronics, and defence industries depend heavily on imported critical minerals from China. Chinese customs data for June 2026 showed no exports of gallium, dysprosium, terbium, or yttrium to Japan.
Strategic and Historical Context
Rare earth export controls have been used in disputes involving supply chains and national security. The 2010 restriction on rare earth exports to Japan during the Senkaku/Diaoyu Islands dispute remains a key reference point in East Asian trade relations.
