Following China's January 6 ban on dual-use exports to Japan—retaliation for Prime Minister Sanae Takaichi's Taiwan remarks—South Korea's industries face risks from interconnected supply chains. The Ministry of Trade, Industry and Resources held an emergency meeting on January 8 to evaluate impacts and pledged safeguards against shortages.
China's ban on dual-use items (goods, software, and technologies with civilian and military applications) to Japan, announced January 6, has raised alarms in South Korea due to the trio's intertwined supply chains. While not directly targeted, Seoul expects broad repercussions, as China warned against circumvention via third countries, imposing a de facto secondary boycott. Korean firms processing Chinese raw materials for export to Japan risk penalties.
South Korea imports nearly 80% of its rare earths from China, which dominates over 70% of global production. Japan sources more than half of its rare earths from China, and disruptions could cascade. The Ministry of Trade, Industry and Resources convened a supply chain inspection on January 8 with ministries and industry groups, vowing close coordination to avert shortages. "We will manage supply and demand thoroughly, keeping all options open to protect production," said Vice Industry Minister Moon Shin-hak.
The response coincides with President Lee Jae Myung's state visit to China, where Beijing urged Seoul to align strategically. Echoing past tensions—like Japan's 2019 semiconductor curbs and China's 2021 urea export limits—experts urge diversifying via Australia, Canada, Vietnam; investing in recycling; and building stockpiles.
