According to the Wall Street Journal, China has begun restricting exports of rare earths and powerful magnets to Japanese companies following a ban on dual-use items to Japan's military. China's commerce ministry insists the ban affects only military firms, but the curbs may extend across industries. This development comes amid strained Beijing-Tokyo ties over Taiwan.
On January 9, 2026, the Wall Street Journal reported that China has started restricting exports of 'heavy' rare earths and powerful magnets containing them to Japanese companies. This follows Beijing's announcement on Tuesday, January 7, of a ban on exporting dual-use items to Japan's military. Dual-use items refer to goods, software, or technologies with both civilian and military applications, including rare earth magnets used in motors for car parts like side mirrors, speakers, and oil pumps.
Citing two Chinese exporters, the Journal said the restrictions began since Tuesday. An unnamed person familiar with Chinese government decisions told the Journal that reviews of export license applications across Japanese industries have been halted, not limited to defense companies. China maintains an export control list of around 1,100 dual-use items and technologies requiring licenses for overseas shipment, regardless of the end user.
However, He Yadong, a spokesperson for China's commerce ministry, stated on Thursday that the export ban on dual-use items to Japan would only affect military firms. 'Civilian users will not be affected,' he told reporters. The Chinese foreign ministry defended the ban as 'legitimate, reasonable and lawful,' adding in response to a Reuters query: 'China’s commitment to maintaining the stability and security of global industrial and supply chains remains unchanged.' Reuters could not immediately confirm the Journal's report, and China's commerce ministry did not respond to Reuters' requests for comment on it.
Relations between Beijing and Tokyo have worsened since Japanese Prime Minister Sanae Takaichi remarked in November that a Chinese attack on Taiwan threatening Japan's survival could prompt a military response—a statement Beijing called 'provocative.' While the restrictions could disrupt Japanese supply chains, China insists civilian sectors remain unaffected.
