China Tightens Rare Earth Export Controls on Japan

China has tightened regulatory scrutiny on rare earth and critical metal exports destined for Japan, raising concerns over potential supply disruptions for high-tech industries ranging from electric vehicles to semiconductors.

Industry sources said the new measures, introduced earlier this month, require exporters to submit extensive additional documentation, including detailed supply-chain disclosures.

According to trade officials and company representatives, Chinese authorities are now demanding precise information on purchasing companies, end-use products, shipment routes, and whether goods manufactured in Japan using Chinese rare earths will be re-exported to third countries, including the US.

While the paperwork is formally submitted by Chinese exporters, Japanese firms are required to provide substantial supporting data, adding to administrative burdens and likely delaying shipments.

The tighter screening follows Beijing’s decision on January 6 to strengthen controls on dual-use exports to Japan. Rare earths, essential components in advanced electronics, clean energy technologies, and defense systems, are included on China’s list of more than 900 controlled dual-use items.

The move comes amid heightened political friction between China and Japan, particularly over remarks by Japanese Prime Minister Sanae Takaichi suggesting Tokyo could respond in the event of a conflict over Taiwan. Chinese commentary has increasingly accused Tokyo of adopting a confrontational security posture, further straining bilateral relations.

China’s Commerce Ministry has stated that the enhanced controls are not intended to affect normal civilian trade. However, Japanese businesses warn that prolonged screening could effectively stall shipments of critical minerals vital to manufacturing supply chains.

Japan remains heavily dependent on Chinese supplies.

In 2024, nearly 72 percent of Japan’s rare earth imports originated from China, according to the Japan Organization for Metals and Energy Security. Analysts say the latest measures underscore Beijing’s growing leverage over strategic materials at a time of rising geopolitical competition in the Asia-Pacific region.