China has begun choking off exports of rare earths and rare-earth magnets to Japan, a potential blow to Japanese companies that use them to produce components for global chip makers, car companies and defense firms. The move is the latest by Beijing to punish Japan for Prime Minister Sanae Takaichi’s remarks late last year suggesting the country could become involved in a conflict over Taiwan, the self-ruled island that China has pledged to take by force, if necessary. China has wielded its control over rare earths—which are crucial to making everything from jet engines to cars—as an economic weapon. After Beijing cut off rare-earth exports to U.S. companies last year, President Trump retreated in his trade war with China. China’s new restrictions on exports to Japan—a close U.S. ally and key industrial partner—illustrate that Beijing remains willing to use the minerals for geopolitical leverage.

Full report : Beijing is punishing Tokyo for leader’s remarks on Taiwan, again wielding critical minerals as an economic weapon.