China's Export Controls Shift from Defense to Offense: Rare Earths as Geopolitical Tools

Central Message

(CNA, Taipei, 13th) At the end of last month, China placed 20 Japanese entities on its export control list, marking the second time this year it has played the 'rare earth card' against Japan. According to Singapore's Lianhe Zaobao, export controls—originally intended for national security management—have become a tool for Beijing to manage international relations and geopolitical strategy.

The report states that at the end of last month, China's Ministry of Commerce added 20 Japanese entities to its export control list, banning the export of any materials that could be used for military purposes, aiming to 'curb Japan's 'new militarism' ambitions.' This is the second round of export controls China has imposed on Japan this year, signaling Beijing's increasing use of export controls as a geopolitical instrument.

According to China's official definition, export controls refer to prohibitive or restrictive measures on the export of goods, technologies, and services related to dual-use items, military products, nuclear materials, and other items tied to national security, international obligations such as non-proliferation, and the protection of national interests.

Yet while Chinese goods are exported globally, the Chinese government not only restricts the export of certain materials but increasingly uses them as strategic weapons.

Wu Xinbo, Dean of the School of International Relations and Public Affairs at Fudan University, has outlined three main phases in the evolution of China's export controls. In the 1990s, amid U.S. efforts to prevent the proliferation of weapons of mass destruction, China began formulating export control regulations to fulfill international non-proliferation obligations, primarily targeting military and nuclear-related items. This marked the first phase.

In 2010, after a fishing boat collision near the Diaoyu Islands between China and Japan, Beijing temporarily tightened rare earth exports to Japan. This marked the second phase of China's export controls, but the 'rare earth card' remained an isolated incident without triggering significant policy or institutional changes.

In recent years, China's export controls have expanded to cover more critical minerals and supply chain nodes. After several adjustments to the export control list, 12 out of the 17 rare earth elements are now under strict Chinese export control.

Wu Xinbo summarizes that in recent years, China's export control system has rapidly evolved—partly in response to U.S. economic pressure and technological containment, and partly due to Beijing's recognition of its leadership in certain fields, which it is now actively converting into a key tool of foreign policy.

Chen Yang, Director of the Japan Research Center at the Chinese think tank Haiyi Intelligence, notes that compared to the February 2023 list, the June list includes Japan's Defense Research Institute and Mitsubishi Heavy Industries—key players in the defense supply chain—indicating broader scope, stronger targeting, and sustained pressure. 'China has gradually institutionalized and normalized its export controls against Japan, moving beyond temporary retaliatory measures,' he says.

Jason Bedford, Visiting Senior Researcher at the East Asian Institute of the National University of Singapore, points out that while China's export control measures are still formally defined as national security measures, in practice they have become broader tools of economic strategy.

Bedford argues, 'A key shift is that China is no longer merely restricting specific goods in a narrow legal sense, but increasingly targeting strategic bottlenecks in global supply chains that are heavily dependent on Chinese raw materials.'

Beyond shifting from passive defense to active offense, China has also extended export controls from raw materials to advanced technologies. In the second half of last year, China successively placed certain advanced lithium battery technologies and full-chain rare earth technologies under export control. (Editors: Zhu Jianling / Lu Jiarong) 1150713