Japan businesses in China seek faster rare-earth export approval

The Mainichi

18-06-2025

BEIJING (Kyodo) -- A group representing Japanese businesses in China on Tuesday urged Beijing to halt excessive export restrictions and speed up the issuance of rare-earth export licenses, saying the curbs have affected member companies.
In a white paper calling for improved business conditions, the Japanese Chamber of Commerce and Industry in China warned that strict export controls "could hinder the supply chain for consumer goods." It urged China to apply such measures appropriately and restrict them to "those truly necessary for security."
China mines about 70 percent of the world's rare earths, which are used in the production of smartphones, personal computers and vehicles. As part of retaliatory measures in a tit-for-tat trade war with the United States, Beijing in April introduced export curbs on seven types of rare-earth minerals.
In August 2023, China introduced restrictions on exports of two rare-earth metals used for chip production, namely gallium and germanium, citing the need to safeguard national security as they could be diverted for military use.
In late May, the Japanese chamber urged the Chinese Commerce Ministry to quicken the process for issuing rare-earth export approvals.
Tetsuro Homma, head of the business lobby, said at a press conference Tuesday that China has issued few rare-earth export licenses to Japanese companies in recent months.
Suzuki Motor Corp. has halted output of its flagship Swift compact hatchback due to China's rare-earth export restrictions, according to sources close to the matter. The curbs have also disrupted auto production in the United States and Europe.
Beijing and Washington agreed to ease trade tensions during recent high-level talks in Geneva and London, with China pledging to remove nontariff barriers, including export controls on rare earths.