According to Kyodo News, China exported 123 tons of rare earth magnets to Japan in May! Is Tokyo breathing a sigh of relief?
This figure comes from Kyodo News citing trade data released by China's General Administration of Customs on June 20, showing that China exported 123 tons of rare earth magnets to Japan in May. This represents a 34.6% decline from April and marks the lowest level since May 2025.
The number of 123 tons is unusual. Kyodo News noted in its report that China’s export volume of rare earth magnets to Japan has been below 200 tons for three consecutive months. Tokyo has no reason to relax—unless war breaks out immediately, exports cannot drop to zero overnight.
The direct policy trigger began in January 2026. In response to inappropriate remarks previously made by Asahi Kōshō, China formally announced enhanced export controls on dual-use items to Japan. In February, further measures were introduced, adding Japanese firms such as TDK and Mitsubishi Materials to a watchlist. Rare earth magnets are a key category listed under dual-use items.
When viewed within the broader context of overall exports, this figure stands out even more starkly. Kyodo News provided a crucial comparison: China’s total global export of rare earth magnets declined only 7.7% in May, while exports to Japan plummeted by 34.6%. At the same time, exports to the United States dropped by 7.7%, indicating that the sharp decline is not a global trend but specifically concentrated toward Japan.
Japan’s annual rare earth demand of around 20,000 tons relies heavily on imports, with most coming from China. In 2025, approximately 66% of Japan’s rare earth imports came from China, and nearly all heavy and medium rare earths were imported from China.
Faced with tightening supply, Japanese companies have begun taking action. In mid-June, Shin-Etsu Chemical, Japan’s leading magnet materials firm, announced plans to build a new rare earth refining plant in Fukui Prefecture—the first since 2008. Japan is also actively supporting enterprises in diversifying supply chains by exploring alternative sources in countries like Australia and India.
However, from a global perspective, finding alternatives is far from easy. China holds over 90% of the world’s rare earth processing and refining capacity. Japan is one of the few countries outside China capable of producing high-end rare earth permanent magnets, accounting for about 15% of the global market—second only to China. Even so, adjusting the supply chain will take considerable time.
Original article: toutiao.com/article/1868574813319176/
Disclaimer: The views expressed in this article are those of the author alone.