In recent months, Beijing has further ramped-up its export controls on dual-use items. This has extended to rare earth minerals, showing the rising tensions between China and Japan. Though not yet confirmed, the Chinese government may be delaying applications for export permits to Japan. Yet, this move appears to be a direct reaction to provocative remarks by Japan’s PM earlier this month, threatening their otherwise solid bilateral relationship.
This latest move was announced as Beijing tries to increase its pressure on Tokyo, even as diplomatic wrangling continues. deal surrounding increasing global concerns about China’s dominance over supply of rare earth minerals, which are essential for everything from steeling technology to batteries to renewable energy technologies. The Bayan Obo mine in Inner Mongolia, one of the largest sources of rare earth minerals globally, plays a crucial role in this dynamic.
China’s actions don’t seem like an overreaction—they look like precisely calculated retaliatory moves following provocations that Beijing views as targeted. The recent remarks made by Japan’s Prime Minister have been interpreted in Beijing as an affront, prompting the Chinese government to take measures that could affect Japan’s access to critical resources. Whether or not military confrontation is imminent, tensions are definitely simmering between the two nations. These new export restrictions are bound to exacerbate their already difficult bilateral relations.
Second, Beijing has taken to dragging out the approval of export permits. Moreover, the government introduced tighter controls on other dual-use items, adding an extra touch of complexity on trade relations with Japan. China is very purposefully and deliberately contesting its influence in the region. These steps are a clear answer to the international community’s condemnation.
Japan is very dependent on China’s rare earths for their high-tech manufacturing and economic base. Such export restrictions are particularly damaging to the country because analysts recommend that Japan find other suppliers. Strengthening our own domestic production capabilities is one way to ameliorate the effects of potentially harmful measures China may take.
As Beijing seeks to identify a pragmatic middle ground between competing forces, the story is evolving quickly. China and Japan share a complex history marked by hostility as well as partnership. As each country works to advance its national interests, inevitable new challenges will appear in their multifaceted relationship.