China Cuts Hi-Tech Metal Exports to Japan, Boosts Rare Earth Shipments

China Cuts Hi-Tech Metal Exports to Japan, Boosts Rare Earth Shipments

China has recently reduced exports of two high-tech metals to Japan, while increasing shipments of rare earth magnets, which could indicate a shift in geopolitical dynamics between the two Asian countries.

Significance of the Metals

Gallium and germanium are critical components in various technologies, including semiconductors, fiber-optic networks, and renewable energy systems. They also have dual-use applications in military technology.

Recent Trade Data

In the first two months of 2026, exports of gallium to Japan dropped to zero from 8,007kg in 2025. Similarly, germanium exports were also at zero compared to 400kg a year earlier.

Geopolitical Context

The export restrictions come amid heightened tensions between China and Japan. In November 2025, Japan's prime minister suggested that an attack on Taiwan could warrant a military response, leading to Beijing's concerns.

Chinese Officials' Stance

Chinese officials have not publicly acknowledged the export curbs, but they coincide with broader measures targeting Japanese entities linked to the military. These include suspensions of group tours and imports of Japanese seafood.