(Jan 20): China’s December exports of rare-earth magnets to Japan eased from a record high in the previous month, as investors monitor trade volumes for signs that Beijing may be restricting flows of critical materials amid deepening tensions with Tokyo.
Shipments of the magnets — used in products like electric cars and consumer goods — fell 8% from November to 280 tonnes, according to China’s customs administration. That’s still the second-highest haul on record and the volumes historically fluctuate widely from month to month.
China is seen as wielding rare earths as leverage over Japan as Beijing pushes for Japan Prime Minister Sanae Takaichi to withdraw remarks she made about Taiwan last year. That’s left major Japanese industries worried about a shortage of magnets that are essential in an array of technologies.
Earlier this month, China announced an outright ban on exports of 800 dual-use items for any applications that could help Japan’s military. An article in Chinese state media also warned of stricter scrutiny over applications to ship rare earths to Japan.
China’s total exports of the magnets in December were down 3.2% to 5,952 tonnes, according to customs data.
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