BEIJING - China has stalled Japan-bound exports of various critical minerals including rare earths and rare metals, mainly items related to the defense industry, recent Chinese trade data has shown, indicating continued economic pressure amid a Sino-Japanese diplomatic row.
In recent years, Beijing has tightened export controls on at least 16 types of minerals amid its trade conflict with Washington. On Jan. 6, China strengthened restrictions on the shipment of dual-use items to Japan following Japanese Prime Minister Sanae Takaichi's parliamentary remarks last November on a Taiwan emergency.
The 16 types of minerals include seven types of rare earths that are used for manufacturing high-tech products including electric vehicles and weapons. China dominates the global supply of rare earths.
Dual-use items are goods, software or technologies that have both civilian and military applications.
Since January, China has not exported to Japan any dysprosium or terbium, which are elements for high-performance permanent magnets. It has also ceased shipments of yttrium and scandium used in the aerospace industry that are "not mixed or alloyed," the data showed.
The impact of tighter export curbs on the three other rare-earth items was unclear as their shipment volume to Japan is generally small or there were no available data.
China's exports of rare-earth magnets to Japan have dropped significantly since the imposition of the tighter controls, with a 35 percent fall in volume registered in May from the previous month, according to the data.
Of the nine other minerals including rare metals, Beijing has stopped Japan-bound exports of molybdenum powder, which is used to produce missile components, since January.
Since February, China has halted the shipment of some tungsten items to Japan, while it did not export some gallium products between the January-April period.
Except for February, China did not ship to Japan any antimonial lead that is used for manufacturing bullets and auto parts. Meanwhile, exports of germanium and graphite had no significant changes.
While Japanese companies are struggling to diversify their supply chains, Chinese authorities detained two Japanese employees of the Fuji Electric group in May over an alleged attempt to take rare earth-related products overseas.
In late June, China added 20 Japanese entities, including the National Institute for Defense Studies and subsidiaries of Mitsubishi Electric Corp., to its list of firms and institutions banned from receiving dual-use items, bringing the total number to 40.
Sino-Japanese ties have sunken to their lowest point in years since Takaichi suggested an attack by China on Taiwan, a self-ruled democratic island Beijing claims, could prompt a response by the Japan Self-Defense Forces in support of the United States.
