On June 11, 2026, Chinese media outlet Guancha.cn reported that Japanese companies plan to build new domestic refineries to reduce their reliance on China for rare earths.

The article introduced that due to rising tensions between Japan and China and tightened export controls by China, China's rare earth exports to Japan in March and April of this year plummeted by more than 80% compared to the same period last year. It also reported that the United States intervened at Japan's request and urged China to resume exports.

Furthermore, it explained that Shin-Etsu Chemical Co., Ltd. has formulated a plan to invest at least 35 billion yen to build a new rare earth refining plant in Fukui Prefecture to reduce its dependence on China and establish a domestic supply chain for electric vehicle (EV) manufacturers and others.

It also introduced that activity among Japanese companies regarding rare earths is intensifying, with Mitsui Mining & Smelting Co., Ltd. also planning to invest 10 billion yen to build new production facilities in Fukuoka Prefecture by fiscal year 2028, and Sumitomo Metal Mining Co., Ltd. planning to expand production starting in fiscal year 2026.

As background, the article pointed out that Japan's production of rare earth products accounts for less than 1% of the global share and that domestic demand is almost entirely dependent on China. It also conveyed the opinion from Japanese experts that Japan cannot currently compete with China due to China's overwhelmingly low refining costs.

In response to this article, Chinese netizens ridiculed the recklessness of rebuilding the industrial chain, with comments such as 'It's like starting to make vinegar just to eat dumplings.'

Furthermore, comments like 'China should just mass-export at low prices and crush them when Japan finishes building its factories,' 'Mass production will continuously inflate environmental costs and subsidies, putting more and more pressure on finances the more they produce,' and 'By the time the factories are operational, the crucial industry will have died out' were lined up. Additionally, a skit-like exchange where a Japanese company executive was speechless at the current situation of '2.5 times the price of China' was also posted and garnered significant sympathy.

On the other hand, a certain number of comments expressing understanding for Japan's decision were also seen, such as 'If it means not being held hostage, it's better to do it yourself, even if it's expensive. It's not a matter of cost, but strategy.' (Edited/Translated by Kawajiri)