TOKYO - Economic circles in Japan are growing increasingly uneasy after the Chinese government announced a blanket ban on exports to Japan of dual-use goods that could be diverted for military purposes, raising concerns that rare earths could be included in the scope of the restrictions.
The move by China has sparked anxiety among Japanese companies, with some warning that if rare earths are added to the list, the impact on Japan’s industrial base could be extensive.
Rare earths are essential materials used in a wide range of industrial products, including electric vehicles and other advanced technologies. As the vast majority of these materials are produced in China, any suspension of exports would likely affect a broad swath of Japan’s industries, starting with the automotive sector.
China has imposed export controls on rare earths in the past, prompting Japan to pursue both public- and private-sector efforts to reduce its dependence on Chinese supplies through diversification and technological development. Even so, eliminating that reliance entirely has proven difficult.
Industry officials caution that while the impact may not be immediate, disruptions are likely over time, with one corporate source noting that “it may not happen right away, but there will be consequences.”
Others point out that the scale of the effect will depend on which specific types of rare earths are targeted, underscoring that Japan’s business community as a whole is closely watching China’s next moves.
Source: FNN
