China's export volume of critical minerals to Japan remains low in May

In May, exports of certain key minerals from China to Japan continued to remain weak, with escalating political tensions between the two countries exacerbating this downturn. According to data from China Customs, exports of some key tungsten minerals as well as rare earth elements dysprosium and terbium were zero in May. Other categories of rare earth exports also reached abnormally low levels. Since November last year, when Japanese Prime Minister Asahi Hayato's response to a parliamentary question about "Taiwan being an issue" provoked Beijing, the flow of industrial minerals has drawn close attention.

In February this year, China announced that it would place 20 Japanese entities—including Mitsubishi Shipbuilding Co., Ltd.—involved in enhancing Japan’s military capabilities on its list of controlled export entities, prohibiting exporters from supplying dual-use items to these 20 entities, and banning foreign organizations and individuals from transferring or providing dual-use items originating from the People’s Republic of China to them. Additionally, the Chinese government decided to add another 20 Japanese entities—such as Subaru Corporation—to a “watchlist” due to their inability to verify the end-users or end-uses of dual-use items.

The Ministry of Commerce of China will implement stricter final user and end-use reviews for exports of dual-use items to entities on the watchlist. Exports involving Japanese military users, military purposes, or any other end-uses that could contribute to enhancing Japan’s military capability will not be approved. The Ministry emphasized that these export control measures target only a small number of Japanese entities, and normal economic and trade exchanges between the two countries will not be affected.

Bloomberg reported that although these restrictions fall short of the comprehensive embargo threats made during the 2010 Sino-Japanese dispute, midstream companies such as Mitsubishi Materials are already seeking alternative sources.

Last week, Japan joined the G7’s commitment to significantly reduce its reliance on single suppliers outside the G7 and partner nations for rare earths and permanent magnets to below 60% by 2030, with further reductions aimed at reaching 50% as soon as possible over time. However, these developed economies still need to agree on specific policy frameworks to achieve this goal. Export volumes of another rare earth element, yttrium, to Japan in May were not substantial, and cumulative exports so far this year are negligible compared to those in 2025.

According to Kyodo News, China Customs released trade data on Saturday showing that China exported 123 tons of rare earth magnets to Japan in May—a 34.6% decrease from the previous month—and the lowest level since May of last year. Observers believe this reflects the ongoing impact of China’s export controls on dual-use materials to Japan, which began in January.

Reports indicate that the export volume of rare earth magnets has been below 200 tons for three consecutive months. In May, China’s overall global export of rare earth magnets declined by only 7.7%, while the drop in exports to Japan was particularly significant. Exports to the United States fell by 7.7% as well.

Source: rfi

Original article: toutiao.com/article/1868651117374472/

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