TOKYO — China’s exports of rare earth magnets to Japan fell 8% in December 2025 from November, Chinese customs data showed, as traders braced for new export controls. Shipments are expected to weaken again in January after Beijing imposed a dual-use export ban tied to military end users and uses, Jan. 20, 2026.
China shipped 280 metric tons of rare earth magnets to Japan in December, down from 305 tons in November, while still 31.4% higher than the same month in 2024, according to a Reuters report citing China’s General Administration of Customs. The same data showed China’s overall rare earth magnets exports fell 3.2% from November to 5,952 tons. Analysts cited in the report said the year-over-year gain likely reflects Japanese buyers bringing forward purchases ahead of expected restrictions.
Rare earth magnets: why the dual-use ban matters beyond defense
China’s Commerce Ministry said the export of dual-use items to Japanese military users or for military purposes is prohibited, and it extended the ban to “any other end-user purposes” that could enhance Japan’s military capabilities. In Announcement No. 1 of 2026, the ministry said the measures took effect immediately — wording that can increase end-use paperwork even when the buyer is a civilian manufacturer.
Japan has protested the move, calling it “absolutely unacceptable and deeply regrettable” and demanding it be withdrawn, according to a Reuters report on Tokyo’s response. China did not publish a detailed item list in that report, leaving companies to watch how export-license reviews are applied in practice.
Chinese officials have insisted civilian trade should continue. “Civilian users will not be affected,” commerce ministry spokesperson He Yadong told reporters, even as exporters described heavier checks after the ban, a separate Reuters report said.
Where rare earth magnets show up in Japan’s supply chain
Rare earth magnets deliver strong magnetic force in small packages, making them common in compact motors used across Japanese industry. They are used in electric vehicles and automation equipment, and even in small motors inside car parts such as side mirrors, speakers and oil pumps — a reminder that “dual-use” controls can collide with everyday manufacturing.
In parallel coverage, the Associated Press reported China did not identify specific products in its public notice, a gap that can leave buyers uncertain about documentation requirements and potential delays.
Rare earth magnets and the long shadow of 2010
Japan has lived through rare earth uncertainty before. During a 2010 diplomatic clash over contested islands, reports emerged that China had halted rare earth exports to Japan after the detention of a Chinese fishing boat captain, Reuters reported in September 2010.
In the years after that episode, Japan diversified supply, invested in recycling and built stockpiles, but exposure has proved hard to eliminate — particularly for some heavy rare earths used to keep magnets performing at higher temperatures. A 2014 Reuters analysis traced those efforts and warned that supply risks could persist.
The next test will come with January trade data and any visible slowdown in export-license approvals. If rare earth magnets become harder to source on predictable timelines, Japanese firms are likely to lean more heavily on inventories, alternative suppliers and product designs that use fewer rare earth magnets.
