China's rare earth exports to Japan plunge 51pc for first half: Nikkei

Shipments of seven categories of controlled rare-earth materials from China to Japan plunged 51 percent year-on-year for the first six months of this year, higher than the 16 percent drop in overall exports to the global market, Nikkei reported, citing data from the General Administration of Customs of China.

China's exports of rare earth to the US also fell 28 percent, the report said.

For June alone, the decline of China's exports of seven controlled rare earths reached 81 percent from a year ago, with yttrium exports dropping to zero. China's rare earth exports to Japan have fallen for four consecutive months since March. 

Notably, exports of dysprosium and terbium, which are used in the manufacture of electric vehicle motors, high-performance magnets, and defense equipment, have both recorded zero for Japan since the beginning of this year.

This came as the Ministry of Commerce introduced a licensing system in April last year to regulate exports of seven rare earths, requiring exporters to declare the use and customer information.

Chinese authorities still issue licenses on occasion, aiming to avoid completely cutting supply sources for Japanese companies, according to the report.

However, the measure of controlling supply may also prompt the Japanese business community to push their government to place greater importance on relations with China.

Reuters

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