Japanese Manufacturers Warn of Rare-Earth Supply Risks as China Limits Exports

July 7, 2026 by admin

Production line of computer electronic components

Photo: Pexels

Two-thirds of nearly 200 Japanese filings in May and June said Chinese export controls were affecting, or could affect, their business.

Restrictions since January

China began restricting rare-earth and magnet exports to Japan in January 2026, and according to people familiar with the matter, it effectively halted reviews of export licence applications. China had accounted for 80% of Japan’s rare-earth imports before the restrictions.

Companies warn

More than two-thirds of nearly 200 filings in May and June that mentioned rare earths said export controls were affecting their business, or could do so in the future, according to Reuters. Citizen Watch and Omron both flagged the risk.

Estimated cost

Nomura Research Institute estimates the curbs could cost the economy about $17 billion a year if they are maintained. Tokyo says it is working with allies and companies to secure supplies. For more, see our business coverage and economy section.

Source: Reuters (7 July 2026); Benchmark Minerals (January 2026); Investing Live (9 January 2026).