Overview
- The export prohibition took effect immediately and targets Japanese military users and any end use deemed to enhance Japan’s military capability, with legal penalties for violators worldwide.
- China did not specify products in the notice, though its dual‑use catalog includes rare earths, electronics, drones, sensors and aerospace components.
- Japan lodged an official protest, with Chief Cabinet Secretary Minoru Kihara calling the action “absolutely unacceptable and deeply regrettable” as authorities evaluate potential industry effects.
- Beijing launched an anti‑dumping investigation into Japanese dichlorosilane used in semiconductor manufacturing, and state‑aligned media reported possible tighter approvals for rare‑earth export licenses to Japan.
- Analysts note Japan sources roughly 60–72% of its rare earth imports from China, and a three‑month curb could cost businesses about ¥660 billion and slightly reduce annual GDP growth.