Rare Earths
Japan urges China to lift dual-use goods export ban over Taiwan remarks
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China's commerce ministry announced on January 7 an immediate ban on exports of dual-use goods to Japan. Japan's foreign ministry protested the move as 'extremely regrettable' and demanded its withdrawal. The measure appears to be retaliation for remarks on Taiwan by Japanese Prime Minister Sanae Takaichi.
Researchers from the University of Science and Technology of China have found that key patents for advanced rare earth functional materials are largely controlled by Japan and the United States.
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Two Japanese nationals have been detained in China on allegations of smuggling rare-earth related products that are subject to export restrictions.
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.
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Building on plans for next week's G7 finance ministers' meeting, Japan is pursuing broader diplomatic outreach. Finance Minister Satsuki Katayama heads to the US starting Sunday for critical minerals talks, Defense Minister Shinjiro Koizumi meets his US counterpart Thursday, and Prime Minister Sanae Takaichi will summit with South Korea's Lee Jae-myung next week.