China has defended its export controls on rare earths to Japan, saying they are designed to stop Japan's "remilitarization" and any move towards nuclear weapons, as Tokyo warned that supplies of the critical metal yttrium have stalled.
Beijing's position
Chinese foreign ministry spokeswoman Mao Ning said on 21 October 2026 that the controls follow Chinese law and aim to block Japan's "remilitarization", according to the Global Times and AFP. She said China's position on keeping global mineral supply chains stable "remains unchanged."
She was responding to a Financial Times report that Japan had asked the United States to help persuade China to ease the restrictions.
Japan's yttrium crunch
A Japanese industry ministry official told AFP of a "supply-demand crunch and soaring prices." Chinese customs data show exports of yttrium oxide to Japan fell to 4,000 kg in September from 51,000 kg a year earlier, a drop of more than 90%. The FT reported that Japan could run out of yttrium within months, although this has not been officially confirmed.
Yttrium is used in electronics, LEDs, aircraft engines and chipmaking equipment. Japan has warned of "severe disruption to the global automotive, defence and chip industries," and the FT reported that US defence supply chains rely on Japanese components that use the metal.
Why China has leverage
China accounts for almost two-thirds of global rare-earth mining and 92% of refined output, according to the International Energy Agency (IEA). That dominance gives Beijing powerful leverage in trade and diplomatic disputes.
Background
Beijing has stepped up pressure on Tokyo since Prime Minister Sanae Takaichi suggested last November that Japan could intervene militarily if Taiwan were attacked. Takaichi had called yttrium "globally scarce" in July.
What happens next
Japan is working with the US and Europe to diversify supplies of critical minerals, but no timeline for China easing its controls has been given. The dispute adds to tensions in East Asia, where North Korea is also escalating along its border with the South.
