China's mineral squeeze testing Japan's military buildup

Samples of rare earth luminescent materials displayed at an exhibition on China's manufacturing achievements at the National Museum in Beijing in March | REUTERS China's tightening export controls on dual-use materials and strategically important rare earths are beginning to disrupt Japanese industry -- including the defense sector. Chinese customs data tell the sharpest part of the story. Exports of dysprosium oxide to Japan ceased after October 2025, and shipments of terbium oxide ended a month later. No shipments of either material have been recorded since. The halt matters because dysprosium and terbium -- both heavy rare earth elements -- are among the most critical inputs for high-performance permanent magnets used in advanced military systems, electric vehicle motors, aerospace applications and industrial robotics.