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China halted exports of several critical rare earth elements and strategic minerals to Japan for another month in June, underscoring how Beijing continues to wield its dominance over global supply chains as a geopolitical tool amid strained bilateral ties.
Chinese customs data released on Monday showed no exports of gallium, dysprosium, terbium or yttrium to Japan during June, extending a months-long disruption that has rattled Japanese manufacturers and raised concerns over the security of critical mineral supplies.
The latest figures come even as China’s overall exports of rare earth magnets recovered last month, suggesting Beijing is selectively easing shipments while maintaining pressure on specific countries.
Japan is home to the world’s largest rare earth magnet industry outside China, but remains heavily dependent on Chinese supplies of processed rare earth materials used in electric vehicles, semiconductors, aerospace, robotics and defence equipment.
Diplomatic fallout continues
Exports of several controlled minerals have remained sharply restricted since diplomatic relations deteriorated after Japanese Prime Minister Sanae Takaichi made comments on Taiwan in November.
China had already imposed export controls on several heavy rare earth elements and the magnets containing them in April 2025. It subsequently tightened restrictions on exports to Japan in January before introducing additional curbs twice in February, targeting major Japanese industrial conglomerates.
The restrictions have emerged as one of Beijing’s most potent diplomatic and economic levers, allowing it to exploit its near-monopoly over critical minerals essential to advanced manufacturing.
Japanese companies have repeatedly warned that shortages of rare earth materials are beginning to affect production across industries, with concerns spreading beyond electronics into automotive, machinery and energy sectors.
Key metals remain unavailable
China exported no gallium to Japan in June after briefly resuming shipments in May through a large one-off consignment.
Gallium is a key input for semiconductor manufacturing, high-performance electronics and rare earth magnets.
Shipments of yttrium also remained at zero. The rare earth element is widely used in thermal barrier coatings that protect aircraft engine turbine blades and power plant components operating under extreme temperatures.
China also sent no yttrium to the United States for the second consecutive month, highlighting the broader impact of Beijing’s export controls on major industrial economies.
Magnet exports rebound, but US shipments lag
While exports of individual controlled minerals remained frozen, China’s overall exports of rare earth magnets increased in June.
Customs data showed shipments rose to 5,649 metric tonnes in June from 4,730 tonnes in May, indicating improving supplies to several overseas markets.
However, exports to the United States remain well below historical levels despite last year’s trade truce between Washington and Beijing.
Customs data show China exported an average of 479 tonnes of rare earth magnets to the US each month during the first half of 2026, roughly 20 per cent below the monthly average of 586 tonnes recorded between 2022 and 2024 before export controls were introduced.
The slower pace of shipments has fuelled concerns within the Trump administration that China is not fully complying with commitments made under the October 2025 agreement between President Donald Trump and President Xi Jinping, which included assurances to maintain supplies of critical materials.
US Trade Representative Jamieson Greer recently acknowledged that China’s compliance on rare earth exports had been “not perfect”.
China retains strategic advantage
China accounts for more than 90 per cent of global rare earth magnet production and dominates processing capacity for many strategically important minerals, giving Beijing enormous influence over international supply chains.
The United States, Japan and several Western allies are investing billions of dollars to develop alternative mining, refining and magnet manufacturing capabilities. However, analysts say meaningful diversification will take years, leaving manufacturers vulnerable to future export restrictions and geopolitical tensions.
The latest customs data reinforce China’s continued ability to calibrate exports of critical minerals, keeping global industries dependent on supplies that remain subject to Beijing’s strategic and diplomatic priorities.
With inputs from agencies.
