China extended its suspension of exports of several critical rare earth elements and strategic minerals to Japan throughout June, highlighting Beijing's continued use of its dominant position in global rare earth supply chains as leverage amid ongoing diplomatic tensions between the two countries.

Data released by China's General Administration of Customs on Monday showed no shipments of gallium, dysprosium, terbium, or yttrium to Japan during June. The figures indicate that Beijing continues to strictly enforce export controls on sensitive rare earth materials and critical minerals.

Japan, home to the world's largest rare earth magnet manufacturing industry outside China, remains heavily dependent on Chinese supplies of several essential raw materials used in high-tech manufacturing.Exports of these materials have declined sharply amid growing diplomatic tensions between Beijing and Tokyo. Relations deteriorated after Japanese Prime Minister Sanae Takaichi made remarks regarding Taiwan last November, prompting a series of Chinese trade restrictions.

China introduced export controls on heavy rare earth elements and rare earth magnets in April 2025, tightened export inspections for shipments bound for Japan in January, and imposed additional restrictions targeting major Japanese companies in February.

Japanese businesses have warned that shortages of critical minerals are beginning to affect broader sectors of the country's economy, raising concerns over supply chain resilience in industries ranging from electronics to advanced manufacturing.

Beijing's dominant position in the global critical mineral supply chain has made export controls one of its most powerful economic and diplomatic tools. The issue has also featured in recent discussions between Chinese officials and US President Donald Trump as global competition over strategic resources intensifies.

Exports of gallium, a material widely used in semiconductor production and advanced magnets, fell back to zero in June after unusually high shipment volumes recorded in May.

China also exported no yttrium to Japan during the month. The rare earth element, used to improve the heat resistance of aircraft engines and power plant turbine blades, was likewise not shipped to the United States for a second consecutive month.

China's overall exports of rare earth magnets remained strong despite the restrictions on exports to Japan. Customs data showed overseas shipments increased from 4,730 metric tons in May to 5,649 metric tons in June, reflecting continued global demand despite tighter controls on selected destinations.(ILKHA)