"China Significantly Tightens Export Reviews for Rare Earth Shipments to Japan"

Details Required on End Use, Intermediaries, and Potential Re-exports to Third Countries

After China imposed export controls on rare earths to Japan, it has been reported that export reviews for shipments to Japan have been significantly tightened within China.

On January 17, Kyodo News, citing multiple sources, reported that since the Chinese authorities announced export controls on dual-use (military and civilian) goods containing rare earths to Japan on January 6, Chinese companies seeking to export rare earths to Japan are now required to submit more detailed documentation than before.

The newly required documents reportedly include information on the final products in which the rare earths will be used, details about intermediary traders, and whether the products will be re-exported to third countries such as the United States. The Chinese authorities have emphasized the accuracy of the information provided, and according to the report, Japanese companies are effectively being required to prepare these documents and submit them to the Chinese side.

Kyodo News explained that if China's review process becomes prolonged, the supply of rare earths essential for Japan's advanced manufacturing sector could slow down, potentially disrupting industrial production. Japan’s industrial sector has a high dependence on rare earths for strategic items such as electric vehicle motors, magnets, and semiconductor processing materials.

China has recently criticized Japanese Prime Minister Sanae Takaichi, who is pursuing the strengthening of Japan's defense capabilities, accusing her of "seeking the revival of militarism." As a result, there are concerns that the review process could become even stricter, citing the potential for civilian products to be diverted for military use.

Although some media outlets have reported that export reviews for rare earth shipments to Japan have been suspended, officials in the trade sector stated that export reviews are ongoing, but the procedures have become more stringent than before, according to Kyodo News.