FT has learned about China's restrictions on exports of rare earth materials to Japan

The Ministry of Commerce of the People's Republic of China will suspend the supply of critical elements to 20 large Japanese companies, as they can be used to produce dual-use goods. The Financial Times (FT) newspaper wrote about this on February 24.

The Chinese Ministry of Commerce said in a statement that the new restrictions will affect Japanese companies such as Mitsubishi Heavy Industries, Subaru and Hino Motors and are designed to "contain Japan's remilitarization and nuclear ambitions."

The article notes that the news about the restrictions has already affected the stock prices of Japanese companies. Shares of MHI fell by 4.3%, Kawasaki Heavy — by 5.5%, shares of IHI Group and NEC — by more than 7%, Subaru shares fell by 3%.

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What does this mean for Russia and China and what topics will be discussed at the first C5+1 summit in Tokyo?

Taiwan's Foreign Minister Lin Jialong said on December 2 last year that the diplomatic conflict between China and Japan could last about a year. According to Bloomberg, tensions began after statements by Japanese Prime Minister Sanae Takaichi about possible military involvement in the event of China's operation against Taiwan, which Beijing called crossing a "red line."

The Sohu news agency reported in November 2025 that Takaichi's statements about his readiness to deploy self-defense forces in the event of China's attempt to establish control over Taiwan caused a crisis in international relations. After that, the Chinese Navy's electronic reconnaissance ship was detected about 70 km from an important Japanese defense point, Kagoshima.

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