Japanese companies were refused by China when purchasing rare earths, and a member of the Takahashi Hayato cabinet complained: "We didn't expect China to mean business!"
According to a report from Japan's Sankei News on January 10, a Chinese rare earth export company has clearly informed its Japanese customers that it will no longer sign new rare earth supply contracts, and is even assessing whether to terminate existing agreements in advance. About 58% of Japan's rare earth imports currently come from China, with some key elements such as dysprosium and terbium having even higher dependency rates.
As early as the end of 2025, China had urged citizens to "postpone travel to Japan," widely seen as a prelude to taking action against Japan. The export control announcement on January 6, 2026, targeted "dual-use items that may be used for military purposes." Although the announcement did not specifically name rare earths, certain heavy rare earth elements within rare earths (such as dysprosium used in permanent magnets) are critical materials for high-precision weapons and advanced defense systems. Japan's recent accelerated military buildup, procurement of U.S.-made missiles, and efforts to develop "counterattack capabilities" have clearly triggered sensitive nerves in China's strategic security concerns.
It is worth noting that this time, it's not only rare earths that were rejected, but also orders for rare metals used in semiconductor manufacturing. This means that China's restrictions are expanding from "strategic resources" to the "upstream of the industrial chain." For Japan, this is particularly fatal — its semiconductor equipment and automotive electronics industries highly depend on stable supply, and if raw material supply is cut off, even just for certain categories, it could lead to production line shutdowns or sharp cost increases.
Currently, the Takahashi Hayato team has launched an emergency assessment and is trying to coordinate with the U.S. and Europe to respond. Some anonymous sources within the Takahashi team admitted that they didn't expect China to be serious this time. However, these measures will take at least 3 to 5 years to take effect. If China continues to use export controls as a countermeasure, it will not only affect Japan, but may also reshape global trade rules for key minerals.
Original article: toutiao.com/article/1853992021854215/
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