China sharply cuts rare earth exports to Japan amid diplomatic dispute

In June 2026 Chinese customs data showed that China exported zero quantities of the controlled rare‑earth metals gallium, dysprosium, terbium and yttrium to Japan, extending a series of export restrictions that began after Japanese Prime Minister Sanae Takaichi’s comments on Taiwan. The export controls, first introduced in April 2025 and tightened in early 2026, have left Japan’s large rare‑earth magnet sector vulnerable, with companies warning of potential production slowdowns.

Overall Chinese rare‑earth shipments remained robust, with total rare‑earth magnet exports rising to about 5,649 metric tons in June, up from 4,730 tons a month earlier. While the volume of rare‑earth ore and metal exports fell 6.4 % year‑on‑year, the export value surged 61.1 % to US$308.3 million in the first half of 2026, reflecting higher prices for the strategic minerals.

The restrictions illustrate Beijing’s willingness to use its dominant position in critical mineral supply chains as a diplomatic lever, affecting industrial manufacturers in Japan and signaling broader geopolitical tensions in the global high‑tech market.