China's Export Controls on Rare Earths Disrupt Japan's Supply Chain
China has imposed export controls on heavy rare earth elements to Japan, significantly impacting Japan's supply chain. These elements, including dysprosium and terbium, are crucial for manufacturing permanent magnets used in electric vehicles (EVs), wind turbines, and military systems. The restrictions began in December 2025, following diplomatic tensions between China and Japan over Taiwan. Japan, which relies heavily on these imports, has been forced to release strategic stockpiles to mitigate the impact. The situation echoes a similar dispute in 2010 but is more severe due to the formalized nature of the controls and the broader geopolitical context involving US-China trade tensions. 
