According to Nikkei Chinese website, trade data released by the General Administration of Customs of China on June 20 shows that China’s rare earth magnet exports to Japan fell 34.6% month-on-month in May to 123 tons, the lowest level since May 2025. The impact of the export controls on dual-use items to Japan that the Chinese government launched in January this year is believed to be continuing. Magnets are a representative application of rare earths, widely used in pure electric vehicles and industrial machinery motors. Dysprosium and other elements added to enhance performance have been included in the control scope, making it difficult to obtain export licenses, especially for high-performance magnets. China’s rare earth magnet export volume has remained below 200 tons for three consecutive months, with the overall global export volume dropping 7.7% in May, while the decline to Japan was particularly pronounced; exports to the US also fell 7.7% over the same period.
The report also pointed out that this move by the Chinese government is related to the strong reaction from Beijing following the parliamentary testimony of Japanese Prime Minister Takayuki Sanae regarding “Taiwan contingency”. The list of dual-use items also covers rare metals, and exports of tungsten carbide to Japan remained zero in May, following the same situation from February to April. In response, China’s Ministry of Commerce stated that civilian uses will not be affected. However, the China-Japan Chamber of Commerce, composed of Japanese-funded enterprises, pointed out that some civilian products have already been affected and called for clarification of the implementation standards.