China Reportedly Blocks Rare Earth Exports to Japan, Targeting Defense Supply Chains

New Year, same bullying. On January 8, The Wall Street Journal reported that China halted the export of rare earths and rare earth magnets to some Japanese firms in direct retaliation for Tokyo’s possible willingness to deploy military force in the event of a crisis over Taiwan. The move follows a January 6 announcement from the Chinese Ministry of Commerce banning the export of “dual use” equipment, intended for both military and civilian use, to Japan.

The measure, which also comes after China’s large-scale military exercises around Taiwan, marks a significant escalation in Beijing’s efforts to coerce Tokyo to remain on the sidelines as it seeks to build out its capacity to blockade and isolate Taiwan.

Chinese Halt in Rare Earths Follows Ban on ‘Dual-Use’ Exports to Japan

While not formally announced by the Chinese Ministry of Commerce, Beijing telegraphed the possibility of a ban in a January 7 article in China Daily, a state-run media outlet. The story noted that Chinese officials were considering tightening export licenses for certain rare earth components. Though the licensing dispute remains ongoing, the measure appears to cover a broad range of Japanese firms, including those in automotive and semiconductor manufacturing, along with defense companies.

The move follows Beijing’s ban on the export of “dual use” goods to Japan, which was announced by the Commerce Ministry earlier during the same week. While the announcement did not list which goods would be impacted, Japanese defense firms rely on Chinese-sourced components, including machine tools, rare-earth components, and advanced electronics — supply chains already under strain from Tokyo’s rising military spending.

Beijing Escalates Campaign of Regional Bullying To Isolate Taiwan

The ban follows Beijing’s escalating coercion campaign against Tokyo over its support for Taiwan. Following Japanese Prime Minister Sanae Takaichi’s November comments on potentially deploying military force in the event of a crisis over the island, China has warned its tourists against visiting the country and initiated a stand-off along the disputed Senkaku Islands. Beijing has also engaged in provocative military exercises in the air and waters off Japan since the incident, including targeting Japanese aircraft over the Sea of Japan and joining Russian air forces for joint patrols around the island’s western coast.

The move also coincides with China’s ongoing efforts to isolate Taipei through a combination of economic and military pressure while simultaneously preparing to launch a cyber-enabled economic warfare campaign against the island. In its most recent drills around Taiwan, in December, the Chinese military called for the exercises to achieve “all-dimensional deterrence outside the island chain” for the first time, signaling Beijing’s growing interest in blockading the island. These drills are often combined with Chinese cyberattacks against Taiwanese critical infrastructure, including the island’s energy grid, hospital network, and defense industrial base.

Washington Should Step Up Its Support for Tokyo

Having already deployed its burgeoning export control regime against the United States, China’s use of rare earths as a weapon will only become more frequent as Beijing seeks to simultaneously isolate Taiwan while confronting growing Japanese military strength. 

In response, Washington should accelerate the implementation of its October agreement with Tokyo to supply and develop alternative sources of rare earths, including coordinating between Australia and Malaysia, both of which signed similar agreements. Moreover, the United States should signal its clear and strong commitment to Japan, through actions such as establishing a joint forces command in theater, while coordinating with Tokyo to strengthen both countries’ support for Taipei in the event of a Chinese blockade scenario.

Jack Burnham is a senior research analyst in the China Program at the Foundation for Defense of Democracies (FDD). For more analysis from Jack and FDD, please subscribe HERE. Follow Jack on X @JackBurnham802. Follow FDD on X @FDD. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.