China Cuts Rare Earth Exports to Japan Over Military Concerns, June 20

China’s Foreign Ministry rejected criticism of its export restrictions on rare earths and dual-use materials to Japan, saying the measures prevent Japanese military expansion. Prime Minister Takaichi raised the issue at the G7 summit in France on June 15-17, where the group expressed deep concern about arbitrary export limits on critical minerals. G7 nations committed to reducing dependence on single suppliers of rare earths and permanent magnets to below 60% by 2030.

China Justifies Export Curbs as Defense Measure

China’s Foreign Ministry spokesman Lin Jian said on June 18 that export restrictions on dual-use materials aim to prevent Japanese military expansion and nuclear development. He stated China manages all military-civilian goods according to law and will not allow exports for military use. Lin accused Japan of “gathering allies and stoking conflict” at the G7 summit and said China’s export controls follow international norms.

G7 Agrees on Supply Chain Diversification Plan

G7 nations adopted a joint statement on June 17 expressing deep concern about arbitrary export restrictions on critical minerals and dual-use goods. The group committed to reducing dependence on single suppliers of rare earths and permanent magnets to below 60% by 2030, with a goal of reaching 50% as soon as possible. Prime Minister Takaichi proposed a joint stockpiling framework, which was included in the statement. Japan is the only G7 member with a critical minerals stockpiling system for civilian use.

Japan’s Tungsten Imports Collapse Under Restrictions

Tungsten-related product exports from China to Japan fell approximately 80% in January 2026 compared to the same month last year, according to Chinese customs data. China imposed export restrictions in February 2026 on 20 Japanese organizations involved in supplying materials to the Self-Defense Forces, covering rare earth materials and other controlled minerals. The restrictions have driven up prices and prompted Japanese companies to explore alternative sources and recycling options.

Canadian Partnerships Diversify Rare Earth Supply

Canada announced 13 new partnerships to strengthen critical minerals supply chains, including deals with two Japanese trading companies. Sumitomo Mitsui Bussan will partner with Ucore Rare Metals to supply rare earths to Japanese magnet and advanced materials makers from an Ontario facility. Hanswa Shoji agreed with KAP Minerals to develop rare earth and phosphate resources in Ontario. Canada expects over 5.7 billion Canadian dollars in capital investment across the rare earth value chain.

Final Thoughts

China’s export restrictions on rare earths to Japan reflect geopolitical tensions over military spending. G7 nations are now moving to reduce dependence on China through diversified sourcing and stockpiling agreements.

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