China Pressures Takaichi with Critical Mineral Export Restrictions

As China imposes restrictions on the export of certain critical minerals to Japan, Japanese companies are suffering significant impacts. Against this backdrop, there is a growing call for Japanese Prime Minister Sanae Takaichi to seek a diplomatic solution.

AFP Yonhap News

According to Bloomberg on the 23rd (local time), China has effectively halted the supply of certain tungsten products to Japan this year. Data from the General Administration of Customs of China show that from January to May, exports to Japan of some tungsten items—including tungstate, tungsten acid, and tungsten oxide products—as well as dysprosium and terbium used in magnet manufacturing for electric vehicles, were nonexistent. Exports of yttrium, which is used in LED displays and semiconductor equipment, amounted to only 7 tons in both February and May.

However, light rare earth elements, which are not subject to export controls, have continued to be exported to Japan without significant disruption. This supply pressure began after Prime Minister Takaichi drew a backlash from China with her comments on Taiwan in November last year.

Bloomberg pointed out that this move appears to be a calculated pressure campaign intended to selectively target Japan without provoking a strong reaction from the United States. While the intensity of these restrictions does not match the large-scale export curbs that threatened Japanese industry in 2010, Japanese companies are now depleting their inventories and seeking alternative suppliers.

Masayoshi Matsumoto, Chairman and CEO of Sumitomo Electric Industries—a major consumer of tungsten—told Bloomberg at an industry exhibition held in Beijing recently, "If this situation continues, there will be a need to start discussions with the Chinese government," expressing concern that "if China excludes Japan from its supply, it will definitely cause problems for Japanese manufacturing."

According to sources, the Japanese ambassador to China has requested several meetings with officials from the Chinese Ministry of Foreign Affairs this year, but none have been granted. With Prime Minister Takaichi refusing to retract her remarks on Taiwan, China has broadened its pressure campaign to include areas ranging from tourism to seafood. As a result, diplomatic engagement between Asia's two largest economies has effectively come to a halt this year.

Despite the situation, the prospect of an early resolution to the conflict between the two countries appears unlikely. Both Prime Minister Takaichi and President Xi Jinping are expected to attend the Asia-Pacific Economic Cooperation (APEC) summit in November. However, sources familiar with the situation told Bloomberg that Prime Minister Takaichi does not wish to hold a bilateral meeting with President Xi, due to dissatisfaction with what she perceives as China's personal attacks directed at her.

This content was produced with the assistance of AI translation services.