News China tightens controls on civilian-use rare earth exports to Japan

Sulky China is upping the ante: restrictions on exports of rare-earth-related products to Japan now include those for non-military use, as Beijing has been tightening export controls on dual-use items to Japan:

Earlier this week, China's Ministry of Commerce said it would tighten controls on exports to Japan of items that can be used for both civilian and military purposes. The move targets shipments to Japanese entities engaged in defence-related activities and covers products deemed to contribute to Japan's military capacity. Those involved in the rare-earth trade say the impact is already being felt. Some export applications to Japan have been outright rejected, while others have been accepted but are taking far longer than usual to clear, leaving companies facing delays and growing uncertainty.

two Chinese exporters have begun limiting shipments to Japanese companies of heavy rare earth elements such as dysprosium as well as magnets containing these strategic materials. Industry sources Nikkei talked to claimed that the tightening of export inspections had in fact started even before the announcement. Chinese authorities are rigorously examining who the final users are and how rare earth-related products will be used. This has made it difficult to issue export licenses, except in cases where the products are processed in Japan and re-exported to the U.S., or when they are used by certain Japanese companies.

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