Following China's ban on dual-use exports to Japan's military, a Wall Street Journal report revealed broader restrictions on rare earths to Japanese firms. Finance Minister Satsuki Katayama condemned the moves and said Japan will outline its stance at next week's G7 finance ministers' meeting in Washington.
Developments in China's Export Restrictions
China's Commerce Ministry clarified on January 8 that its January 6 ban on dual-use items—such as rare earth magnets—targets only military end-users, with civilian applications unaffected (via Xinhua). However, the Wall Street Journal reported the same day, citing exporters, that export license reviews for 'heavy' rare earths and related magnets to Japanese companies across sectors have been halted. Reuters could not verify the claim.
Finance Minister Satsuki Katayama expressed deep concern, stating: "Securing monopolistic positions through non-market means and using them as strategic weapons is unacceptable and crisis-inducing for the global economy." She plans to share Japan's position at the G7 finance ministers' meeting in Washington on January 12, focusing on rare earth supply security.
Trade Minister Ryosei Akazawa said Japan is analyzing the situation and coordinating with allies like the US, noting the global impact of China's rare earth dominance.
Tensions persist after Prime Minister Sanae Takaichi's November remarks on a potential Chinese attack on Taiwan. Separately, China launched an anti-dumping probe into Japan-made dichlorosilane, a semiconductor material, on January 7.