China Slaps Rare-Earth Ban on Japan After Takaichi’s War Remarks

The Spark

It started with a single sentence. On 20 March, Japan’s Defence Minister Takaichi told parliament Tokyo must be ready to "defend Taiwan militarily if attacked." Within 48 h, Beijing hit back with a weapon it rarely wields—export permits.

What Exactly Did Beijing Block?

Customs data show three product codes frozen:

• Neodymium-iron-boron magnets (HS 8505.11)
• Dysprosium oxide ≥99.5 % purity
• Terbium metal, unwrought

All are on the Ministry of Commerce’s new "Military end-use restricted" list, effective midnight 22 March.

Why These Metals Matter

"A single F-35 contains 400 kg of rare-earth magnets," notes Dr. Yui Nakamura at Tokyo Tech. "Without them, the radar simply can’t gimbal."

Japan imports 63 % of its rare earths from China; the last time Beijing choked the flow in 2010, spot dysprosium prices spiked 2 000 %.

Tokyo’s 72-Hour Scramble

Trade minister Takaichi (no relation) convened emergency talks with Lynas, Australia’s only major non-Chinese supplier, and floated releasing 7 000 t from national stockpiles. Meanwhile, Toyota quietly rerouted two hybrid models to plants in Thailand to stretch magnet inventories.

Global Ripple

Washington, reliant on Japanese-sintered magnets for Patriot missiles, lodged a formal WTO complaint. The EU hinted at joining, but Germany’s auto lobby urged caution—fearing Beijing could widen the ban to civilian shipments.

What Happens Next

China’s commerce ministry says the curbs will stay until Japan "respects the One-China principle." Analysts predict a 15 % jump in rare-earth prices this quarter, though a full export ban on all 17 elements remains unlikely—Beijing needs the foreign currency.