Japan on high alert over China's Export Control Law enforcement... Fears of rare earth export ban recurrence

Starting Next Month, China’s Export Control Law Takes Effect
Rare Earths Likely to Be Included as Strategic Materials
Japan Increases Rare Earth Stockpiles but Remains Vulnerable

[Asia Economy Reporter Naju-seok] As China is scheduled to implement the Export Control Law next month, which strengthens the export control of strategic materials and advanced technologies, Japan is becoming highly tense. This is because concerns have grown that China might include rare earth elements in strategic materials to pressure Japan.

On the 26th, Japan's economic newspaper Nihon Keizai reported that Japanese companies are closely monitoring China's Export Control Law. This is due to fears that controls on rare earth elements, essential for hard disks, electric vehicles, and wind turbine motors, could be tightened.

The appearance of the Senkaku Islands, which Japan claims as its territory

The Export Control Law, which China will enforce next month, contains regulations that prohibit the export of strategic items posing security risks to third countries. The targeted items include goods involved in large-scale weapons of mass destruction or those that can be used for terrorist purposes such as biochemical weapons. The Chinese government requires the selection of these items to go through deliberation by the State Council or the Central Military Commission.

Previously, Japan suffered a blow when China restricted rare earth exports. After the collision incident between a Chinese fishing boat and a Japan Coast Guard patrol vessel near the Senkaku Islands (Chinese name Diaoyu Islands) in 2010, China limited rare earth exports to Japan. Japan's industrial sector was severely impacted as imports from China, the main supplier route for rare earths, were restricted.

Japan filed a complaint with the World Trade Organization (WTO) over this issue. The WTO ruled in favor of Japan at that time. Subsequently, China lifted regulations by abolishing export quotas but responded by consolidating producers and strengthening state control. If rare earths are controlled under the Export Control Law, it will become difficult for targeted countries to purchase Chinese rare earths.

Japan, having experienced the rare earth crisis, took measures such as stockpiling domestic consumption in advance and diversifying import sources. However, there are criticisms that limitations remain due to China's overwhelming share of rare earth production.

This content was produced with the assistance of AI translation services.