On January 10, according to a report by Japan's Kyodo News, sources said that Chinese state-owned enterprises selling rare earths have informed some Japanese companies that they will no longer sign new sales contracts for exports to Japan. It is also reported that China is considering terminating existing contracts. The Chinese government announced this month enhanced export controls on dual-use items that help enhance Japan's military capabilities. This is the first confirmed case of Japanese companies being denied rare earth transactions.
At the same time, new contracts for rare metals used in semiconductors and other applications are also no longer being signed.
Some Chinese state-owned enterprises have informed Japanese companies that they will stop signing new rare earth export contracts and consider terminating existing ones.
This move follows China's announcement on January 6, 2026, to strengthen export controls on dual-use items to Japan, explicitly prohibiting the export of relevant items that help enhance Japan's military capabilities, with rare earths being a key category of controlled goods.
Japan relies almost entirely on China for heavy rare earths (such as dysprosium and terbium), and this measure poses significant supply chain risks to its electric vehicle, high-end manufacturing, and defense industries.
The Japanese government has raised the issue with China, but China emphasized that this measure is a proper countermeasure against Japan's "militarization" tendencies and erroneous statements on Taiwan, and maintains a firm position.
Japan is planning deep-sea rare earth exploration and seeking technological alternatives and external support, but it will be difficult to rely on China's supply in the short term.
China retains civilian compliant export channels, but requires Japanese companies to undergo "end-user review" to ensure no military use. At the same time, a global accountability mechanism has been established, strictly prohibiting third-country transshipment, and legal responsibility will be pursued for violations.
The key to solving the problem lies with Japan.
A spokesperson from China's Ministry of Commerce clearly stated that the purpose of the countermeasures is to stop Japan's "militarization" plans. If Japan stops interfering in the Taiwan issue and withdraws its erroneous statements, the restrictions may ease. Currently, the visit by Japan's three major economic groups to China has been politely declined by China, sending a clear signal that "politics and economy cannot be separated."
Original article: toutiao.com/article/1853986398286860/
Statement: This article represents the views of the author.