China defended export curbs on Japan Wednesday after the Financial Times reported Japanese officials and trading executives warned yttrium shortages could disrupt automotive, defense and semiconductor production within months unless supply improves or alternatives emerge.
The Financial Times attributed the warning to Japanese officials and trading executives. It reported that Japanese officials had sought help from the U.S. government and major American companies in persuading Beijing to ease its controls.
The newspaper said shortages could put Japan's automotive, defense and semiconductor production at risk. Manufacturers use yttrium in coatings that protect jet engines from heat and in machinery for semiconductor production.
China began requiring export licenses for specified yttrium products on April 4, 2025. On Jan. 6, 2026, it imposed separate restrictions on dual-use exports to Japanese military users and for uses that could strengthen Japan’s military. Dual-use products can have both civilian and military applications.
China added 20 Japanese entities to a restricted list on Feb. 24, barring exports of dual-use items to them. It placed another 20 on a watch list, subjecting proposed shipments of dual-use items to tighter licensing review.
Chinese Foreign Ministry spokesperson Mao Ning said at a briefing that the controls complied with Chinese law. She said they were intended to prevent what she called Japan’s “remilitarization” and an attempt by Tokyo to acquire nuclear weapons. Mao also said China’s position on stable and secure global critical mineral supply chains had not changed.
Reuters reported that U.S. and Japanese officials and company representatives met Sept. 10 to discuss yttrium supply bottlenecks, citing an invitation it obtained. The reported shortage warning depends on whether supplies improve or manufacturers find alternatives.
