China Pushes Rare-Earth Leverage in Japan

China's Rare-Earth Leverage in Japan

News: China has escalated its dispute with Japan by threatening export bans on items with potential military applications, notably rare-earth magnets critical to EVs, wind turbines, electronics and defence systems.

The move follows remarks by Japan’s prime minister on Taiwan. However, Japan is among the best prepared nations to withstand such pressure, having diversified supply chains and built stockpiles after a similar Chinese export curbs in 2010.

While China still supplies about 70% of Japan’s rare-earth imports, Japan also manufactures a significant share of global magnets and has alternative sources.

China’s repeated use of rare earths as leverage is accelerating global diversification, with new production facilities emerging across the US, Europe, India and Australia—gradually weakening Beijing’s long-term dominance.