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China has doubled down on its months-long restriction on exports of rare earth products to Japan despite reports of the US asking Beijing to lift those measures.
In January, China’s Ministry of Commerce officially announced an export ban on dual-use items — including those made of rare earth elements— that would be intended for Japanese military use, after tensions escalated between the two Asian powerhouses from their respective stance on Taiwan.
On Tuesday, the Chinese government reaffirmed that the export ban remains in place, with Spokesperson of the Ministry of Foreign Affairs Lin Jian reiterating that rare earths remain classified as “dual-use materials” under Chinese laws that prohibit their export to the Japanese government for military purposes.
While it has choked off shipments to Japan, China’s rare earth exports have been seen rising in recent months, with the latest customs data showing exports reaching a fourth-month high in May. Still, the export figures remain down compared to this time last year.
Lin’s statement came as he was asked by Bloomberg about an earlier report by Nikkei claiming that the US government had asked China to allow the resumption of rare earth metal sales to Japan due to concerns over the global supply chain related to Japan’s technology sector. In addition to containing remilitarization, the move was also to slow Japan’s attempt to possess nuclear weapons, Lin also said.
To alleviate the impacts of the Chinese export ban, Japan has been ramping up efforts to form rare earth partnerships with its Group of Seven peers. These include the formation of a “trilateral buyers” club with France and Canada, as well as a A$1.6 billion deal with Australia to strengthen its supply chain.