Beijing’s ban on exporting any dual-use items to Japan for military use — as well as a separate threat to step up rare-earths curbs — strike at well-known vulnerabilities in Japan’s supply chains. Any tit-for-tat response from Tokyo would risk compounding economic woes, especially for Japanese carmakers that require Chinese-source inputs to produce electric vehicles. The Lynas Rare Earths processing plant in Kalgoorlie, Australia. After the 2010 embargo, Japan moved to diversify its sources of rare earths. Raising concerns about China’s export controls there would be an easy sell, since other members share similar concerns about critical minerals and industrial security.

Source: The Edge Markets January 07, 2026 08:07 UTC