Rare earth Photo:VCG

Japanese media outlets have recently continued to publish reports with uncorroborated claims about China's export control measures on dual-items to Japan. In the latest example, according to Kyodo News, trade sources claimed on Saturday that China has tightened screening of Japan-bound exports of rare earths and other rare metals since earlier this month, with authorities demanding additional paperwork including detailed supply chain information.

A Chinese expert said the reported move has not been confirmed by either Chinese or Japanese authorities, adding that the Japanese side's hype and heightened attention reflect concerns over rare-earth supply security after China imposed export controls on dual-use items to Japan in accordance with its laws and regulations and international trade rules. 

The unnamed sources claimed that it is feared the measure, introduced after China strengthened control of dual-use item exports to Japan on January 6, will cause significant delays in shipments of the critical minerals used in such high-tech items as electric vehicles and semiconductors, Kyodo News reported. 

Specifically, the sources claimed the new rules requested "correct" information on companies purchasing rare elements, final products to be made with those materials, shipment routes, and whether items to be manufactured in Japan with the minerals will be exported to third countries including the US, according to the report. 

On January 6, the Chinese Ministry of Commerce announced that China has decided to strengthen export control on dual-use items to Japan, effective the same day. It prohibits the export of all dual-use items to Japanese military users, for Japan's military use, and for any other end-users and end-use purposes that help enhance Japan's military capabilities. A spokesperson from the ministry noted that the Japanese leader recently made erroneous remarks regarding China's Taiwan region, hinting at the possibility of military intervention in the Taiwan Straits.

The claims reported by Kyodo News underscored growing fear among Japanese businesses for potential supply disruptions, but China's export controls on dual-items to Japan is in line with both Chinese laws and regulations as well as international trade rules, Huo Jianguo, a vice chairman of the China Society for World Trade Organization Studies in Beijing, told the Global Times on Sunday.

China's move fully justified, reasonable and lawful, as export controls fall squarely within a country's sovereign rights, Huo said. 

Also highlighting Japanese businesses' growing concerns, some media in Japan had previously claimed that permit reviews over rare-earth exports to Japan for civilian use have been suspended, and Chinese state-owned enterprises have notified some Japanese companies that they would not sign new contracts on rare earth supplies.

Asked about the reports at a regular press briefing on January 12, Chinese Foreign Ministry spokesperson Mao Ning referred the questions to competent authorities for specifics, but stressed that China's measures, which were taken in accordance with the laws and regulations, are fully legitimate, justified and lawful.

In responding to a separate but related question, Mao said that China stepped up export controls of dual-use items toward Japan to safeguard national security and interests and fulfill international obligations such as non-proliferation, and the measures are fully justified, legitimate and lawful.

"On keeping the global industrial and supply chains of critical minerals safe and stable, China's position has not changed. All parties have the responsibility to play a constructive role for this end," Mao said.