On June 8, 2026, Chinese media outlet Guancha reported that China has drastically reduced rare earth exports to Japan as a countermeasure against the anti-China stance of the Sanae Takaichi administration, putting Japanese companies in crisis.

The article stated that China strengthened export controls on dual-use goods for Japan starting this January. It reported that China's rare earth exports to Japan plummeted by over 80% year-on-year in March and April.

Furthermore, according to reports by Japanese media, exports of dysprosium and terbium, essential for magnets in electric vehicle (EV) motors, have been zero since January this year, and yttrium, used in semiconductors and other products, has also decreased by over 90%, indicating a serious shortage of crucial raw materials in Japan.

Regarding the background of China's export restrictions, the article pointed out the negative stance of the Takaichi administration towards China, including Prime Minister Takaichi's Taiwan-related remarks last November. It introduced that Chinese Foreign Ministry spokesperson Mao Ning claimed that these measures "are to prevent Japan's rearmament and attempts to possess nuclear weapons" and emphasized that they are legitimate under law.

The article mentioned that an executive of a major Japanese manufacturer expressed concern that if the current situation continues, domestic production would be hampered, potentially forcing factories to halt operations. It reported that Japanese companies are accelerating investments and actions to break away from their dependence on China, such as alternative procurement from Australia and India, development of rare earth-free magnets, domestic resource development off Minamitori Island, and recycling technologies.

Incidentally, Guancha began its report by citing the idiom "早知今日，何必当初？" (If you had known today, why did you do it then? - meaning, if you knew this would happen today, why did you act as you did then?), sarcastically implying that Japan brought these consequences upon itself. (Edited/Translated by Kawajiri)