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Japan’s Business Leaders Call on China to Streamline Rare Earth Export Rules as Delays Hit Supply Chains

Published: Jun. 18, 2025 5:25 a.m. GMT+8

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China accounted for roughly 70% of global rare earth production in 2024 and controls nearly half the world’s known reserves.

Japan’s leading business group is urging China to streamline its rare earth export procedures, warning that inconsistent and delayed approvals are disrupting Japanese companies’ production and threatening broader global supply chains.

Tetsuro Homma, president of the Japanese Chamber of Commerce and Industry in China, said Tuesday that recent Chinese export controls on critical metals — including tungsten and seven rare earth materials — are already straining Japanese manufacturers operating in the country.

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Japan’s business group urges China to standardize rare earth export procedures, citing production disruptions and global supply chain risks due to inconsistent licensing.
China, which produced about 70% of global rare earths in 2024, expanded export restrictions in April, causing shortages and production halts for companies like Suzuki and Ford.
Japan seeks unified forms, faster reviews, and legal clarity; some export licenses have resumed, hinting at a possible easing after recent trade talks.

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Who’s Who

Japanese Chamber of Commerce and Industry in China: The Japanese Chamber of Commerce and Industry in China is a leading Japanese business group. Its president, Tetsuro Homma, is advocating for clearer and faster rare earth export procedures from China. The Chamber has proposed solutions to the Chinese Ministry of Commerce to standardize licensing and improve efficiency, aiming to prevent production disruptions for Japanese companies.

Suzuki: Suzuki, a Japanese company, was reportedly compelled to halt the production of its Swift compact car at a factory in Shizuoka. This shutdown was attributed to a shortage of rare earth materials, highlighting the impact of China's inconsistent export procedures on global supply chains.

Japan External Trade Organization: The Japan External Trade Organization (JETRO) is a government-related organization that promotes trade and investment between Japan and other countries. Osamu Onodera, head of JETRO's Beijing office, contributed to the Japanese Chamber of Commerce and Industry in China's 2025 White Paper on China's Economy and Japanese Enterprises.

JL MAG Rare-Earth Co.: JL MAG Rare-Earth Co. is a major Chinese producer of rare-earth magnets. The company recently secured export licenses to ship rare-earth magnets to various international destinations, including the U.S., Europe, and Southeast Asia. This development suggests a possible softening of China's stance on rare-earth exports.

Ford Motor Co.: Ford Motor Co. experienced a temporary shutdown of its Explorer SUV assembly line in Chicago due to material shortages. This incident is attributed to China's export restrictions on rare earth materials, which are crucial for electric vehicles. Some manufacturers, including potentially Ford, are considering relocating parts of their production to China to overcome these export bottlenecks.

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