China tightens screening of Japan-bound rare earth exports

BEIJING/SHANGHAI — China has tightened screening of Japan-bound exports of rare earths and other rare metals since earlier this month, with authorities demanding additional paperwork including detailed supply chain information, amid a bilateral diplomatic feud over Taiwan, trade industry sources said Saturday.

They said it is feared the measure, introduced after China strengthened control of dual-use item exports to Japan on Jan 6, will cause significant delays in shipments of the critical minerals used in such high-tech items as electric vehicles and semiconductors.

Chinese authorities have requested "correct" information on companies purchasing rare elements, final products to be made with those materials, shipment routes, and whether items to be manufactured in Japan with the minerals will be exported to third countries including the United States, the sources said.

The documents concerning supply chains will be submitted by Chinese exporters, but Japanese companies share the burden as they prepare documents with related information for the Chinese firms, they added.

Beijing has increased economic pressure on Tokyo, infuriated by Japanese Prime Minister Sanae Takaichi's parliamentary remarks in November that suggested Japan would act in the event of an attack on Taiwan, a self-ruled democratic island claimed by the mainland.

Recent Chinese commentary has often characterized the government under Takaichi, known for her hawkish views on security, as seeking to revive Japan's wartime militarism.

Rare earths, essential for products including advanced weapons, are on the Chinese government's list of more than 900 dual-use goods, along with chemical products and aerospace-related equipment.

The Chinese Commerce Ministry has said its tightened export controls on dual-use items to Japan are not expected to impact "normal civilian trade," but some Japanese businesses said Beijing may be aiming to "effectively halt" critical mineral shipments to the neighboring country by prolonging the screening process.

In 2024, 71.9 percent of total Japanese rare earth imports originated from China, according to the Japan Organization for Metals and Energy Security.

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