These actions have led Beijing to deepen its export controls on dual-use items against Japan, showing increasing hostilities between the two countries. This latest move is a clear address to Japan’s Prime Minister’s recent statements. It puts additional diplomatic pressure on China and the campaign’s other targets. Now China is stalling on rare earth export applications to Japan. It’s the latest delay to hold up essential permits even as this devastating dispute continues.
Things took a turn for the worse when Japan’s Prime Minister Shinzo Abe said something that Beijing took to be inflammatory. In response, Chinese authorities have further tightened export controls. These materials are essential for numerous advanced technologies and industries. Rare earth elements are a group of 17 minerals essential to the production of electronics and batteries. Beyond their role in transportation, they are vital to military equipment.
The world’s largest rare earth mine, Bayan Obo, is located in Inner Mongolia, China. It was long considered one of the largest sources of rare earth minerals on earth. China currently produces and supplies more than 85% of the world’s rare earth materials. This small control handles more than just freight. This control is central to the US and international trade and diplomatic negotiations. Beijing is stalling on granting export permits and rigorously reviewing applications. This tactic enables China to use its role as a key supplier to exert maximal pressure on Japan.
Experts say these moves are part of a bigger plan from Beijing. Each seeks to expand their political and economic clout within the region. As the broader diplomatic relationship between China and Japan continues to be tense, the exporting of rare earths turned into an issue. The most severe impact of the stalling of export permits is on Japanese industry. This exposes, first and foremost, China’s willingness to weaponize trade in the midst of great power competition.
Beijing’s new use of export controls shows that they too are growing more sensitive to the notions of national security and unwanted technology transfer. The Chinese government has certainly made its fair share of noise about keeping its technological advancements close to home while securing sensitive materials from potential threats. Japan has been long unable to meet its rare earth needs without significant import reliance. As such, China’s actions could have a catastrophic impact on Japanese producers and stifle technological innovation.