Beijing has stepped up its use of export controls for dual-use items. This includes rare earth minerals en route to Japan as the relationship between the two countries deteriorates. These measures are in support of China’s overarching strategy. Originally conceived as a tool to apply pressure on Japan during contentious diplomatic situations, their effect is now far-reaching. Unfortunately, the arc has become more complex. Now it looks like the Chinese government is firing back in retaliation for the remarks by Japan’s prime minister.
These recent moves from Beijing have been compounded by the deliberate slow-walking of applications for export permits by Chinese authorities for rare earth materials. This slowdown directly impacts Japan’s ability to access critical rare earth commodities now necessary for production across key industries, including technology and advanced manufacturing. The Bayan Obo mine in Inner Mongolia, for example, is the world’s largest source of rare earth minerals. It is particularly important here.
Beijing and Tokyo’s relations have soured in the past few months over a number of ideological spats. These are among the costly new restrictions that Beijing has imposed in retaliation for inflammatory comments made by Japan’s leadership about China. Many activists took those comments as incendiary. China is now deliberately dragging its feet on the processing of export applications. This effort ratifies its willingness to weaponize precious rare earth resources in geopolitical jockeying.
Some experts argue that the strategic importance of rare earth minerals is really overblown. These resources are critical for manufacturing electronic devices, batteries, and other emerging advanced technologies. Accordingly, the new and looming export controls might have far-reaching repercussions not just for Japan’s economy, but for its technological edge and future innovation.
The effects of these limitations will surely go beyond short-term economic worries. Analysts indicate that the standoff could strain bilateral relations further, complicating negotiations on other trade and security issues between the two nations.