The Japanese Yomiuri Shimbun reported on the 5th that the Chinese government is known to be reviewing a plan to ban the export of high-performance rare-earth magnet manufacturing technology required for electric vehicles (EVs) and wind power generation motors on the grounds of ‘national safety’.
As the global decarbonization trend progresses toward electrification of power, China seems to be aiming to control the supply chain of magnets and establish hegemony in the environment field where growth is expected, the newspaper analyzed.
According to Yomiuri, the Chinese government is in the process of revising the China Export Ban/Export Restriction Technology List, which is a list of industrial technology export restrictions such as manufacturing, and announced an amendment to this list in December of last year. By adding ‘neodymium’ and ‘samarium cobalt’, which are high-performance magnets using rare earth elements, the export ban on related manufacturing technologies has been newly included.
A magnet is a key component that greatly influences the performance of motors that rotate using electric power or magnetic force. In addition to electric vehicles, magnets are widely used in industrial equipment such as aircraft and robots used as weapons, mobile phones, and air conditioners.
Its use is expected to increase along with semiconductors and storage batteries, and it is considered that “if supply is cut off, it will have a profound impact on a wide range of people’s lives and economic activities” (Japanese government).
It is known that the global market share of neodymium magnets is 84% in China and 15% in Japan, and more than 90% in China and less than 10% in Japan for samarium cobalt magnets.
If China bans the export of manufacturing technology, “the United States and Europe, which do not have magnet makers, find it difficult to enter new markets and have no choice but to completely rely on China (European official)” Yomiuri pointed out that there is a possibility that Japan will lose its market share in the future by promoting magnet manufacturing at low cost.
According to Yomiuri, the amendment specifies the purpose of protecting ‘national security’ or ‘public interest of society’ regarding export ban restrictions. The Xi Jinping regime sees magnets as a key to economic growth and a strategic material related to national security.
When it comes to national security, in addition to the military, the city government also targets the economy, culture, society, science and technology, information, and resources, and the supply chain is one of them. At an internal meeting in 2020, President Xi ordered to increase public dependence on international supply chains. Yomiuri reported, “The ban on export of magnet manufacturing technology is also seen as part of that, so we plan to use it as a trump card for the US and Europe, which are promoting decoupling (separation) from China and blocking key technologies in the environmental field in Korea.” .
Some view China’s rare-earth magnet embargo as a retaliatory measure against Japan’s semiconductor export restrictions.
On March 31, the Japanese Ministry of Economy, Trade and Industry announced measures to strengthen export regulations in the high-tech semiconductor sector. A total of 23 items are targeted, including exposure devices that record fine circuit patterns on boards, and devices used for cleaning and inspection. Specifically, ‘advanced semiconductor manufacturing equipment’ is subject to regulation. Semiconductor manufacturing equipment for general purpose products was not targeted.
This measure by Japan was evaluated as a de facto participation in the movement of the United States, which announced export control of semiconductors targeting China in October of last year.
In response, at the China-Japan summit held in China on the 2nd, Chinese State Councilor and Foreign Minister Qin Gang told Japanese Foreign Minister Hayashi Yoshimasa, “The United States is now using the old method of bullying in China, which brutally suppressed the Japanese semiconductor industry.” You shouldn’t do to others what you don’t want to do, and you shouldn’t be a pawn for the tiger.”
Speaking at a press conference on the 3rd, Chinese Foreign Ministry spokesman Maoning said in response to Japan’s semiconductor export restrictions, “If Japan artificially restricts cooperation between the two countries and seriously damages China’s interests, we will not stand still and will respond sternly.” suggested
Spokesperson Ma also pointed out that Japan’s regulations are “widely perceived as deliberately limiting cooperation between China and Japan’s semiconductor industry.”
Regarding this, Japanese government spokesman Hirokazu Matsuno, the Japanese government’s spokesperson, said at a regular press conference on the 4th, “I am aware of China’s reaction” to the semiconductor export restrictions, but “this measure is consistent with international regulations from the viewpoint of maintaining international peace and security. It is to implement strict export control in one form (整合·fitting),” he emphasized.
Chief Cabinet Secretary Matsuno explained, “Japan’s measures are not aimed at a specific country, and we have conveyed (to the Chinese side) that we will continue to take appropriate responses under this policy.”
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.