TOKYO - China's exports of rare-earth magnets to Japan in March fell 17.3% from the previous month to 184 tons, China's General Administration of Customs said on April 20.
Rare-earth magnets are one of the country's key rare-earth products. Monthly shipments to Japan dropping below 200 tons marked the first time since June 2025.
The decline is seen as reflecting the impact of export restrictions imposed by the Chinese government in January on dual-use goods bound for Japan.
Trade in rare earths between Japan and China has long been one of the most strategically sensitive commercial relationships in Asia. Japan is a major producer of automobiles, electronics, batteries and advanced machinery, while China has for years dominated the mining, refining and processing of rare earth materials essential to those industries.
Japanese manufacturers deepened their reliance on Chinese supply during the 2000s as China rapidly expanded production and offered lower-cost materials than rivals. By the end of that decade, China had secured a commanding position in the global market, supplying most of the world’s rare earth output and processing capacity. Japanese companies imported magnets, oxides and refined materials for use in hybrid vehicles, industrial motors, semiconductors and consumer electronics.
The vulnerability of that dependence became clear in 2010, when tensions between Tokyo and Beijing following a maritime dispute in the East China Sea were accompanied by a sharp disruption in rare earth shipments to Japan. The episode prompted alarm in corporate Japan and within government circles, highlighting the geopolitical risk tied to concentrated sourcing.
Japan responded by accelerating efforts to diversify procurement. Trading houses and manufacturers invested in alternative supply chains, including projects in Australia and Southeast Asia. Japanese firms also increased recycling of rare earth materials, developed technologies to reduce usage, and redesigned some products to rely less on scarce heavy rare earth elements.
One of the most notable initiatives was support for Australia’s Lynas project, which became a major non-Chinese supplier to Japanese industry. Over time, Japan succeeded in lowering the share of imports sourced directly from China, though Chinese producers remained central to global refining and magnet manufacturing.
In the years that followed, the trade relationship stabilized, but strategic concerns never disappeared. China continued to hold significant leverage through its control of processing capacity, particularly for high-performance magnets used in electric vehicles, wind turbines and defense-related equipment.
As the global shift toward decarbonization increased demand for electric motors and batteries, rare earths again moved to the forefront of industrial policy. Japan sought to secure supplies through stockpiling, overseas partnerships and domestic research into substitute materials.
Source: テレ東BIZ
