According to calculations by 'Mizuho Research & Technologies', based upon a report from the Ministry of Finance, Japanese imports of China rare earths fell 5.7% in January compared to a year ago.

It wasn't immediately clear if the decline in the number of visitors was connected to the diplomatic dispute that exists between the two countries. In November, Prime Minister Sanae Takaichi stated that Japan would use military force if Taiwan was attacked and also threatened Japanese territory.

China announced a ban on exports to Japan last month of dual-use products with possible military applications. The Wall Street Journal reported that exports of rare Earths and powerful magnets which contain them were also affected.

Mizuho Research & Technologies, based on trade data released on Thursday calculated the net equivalent of eight rare earth-related items. These include cerium oxide, cerium compounds, and other products used in the metallurgy and automotive industries.

Officials at the Japan Organization for Metals and Energy Security (JOMES), a state-backed organization that supports Japan's rare earths growth, have said that monthly figures are subject to fluctuations and it is important to assess whether or not the drop in imports for January was directly related to China?s export curbs.

Takeshi Higashifukasawa is a senior economist with Mizuho Research & Technologies. He says that Japan's GNP could drop by 0.1%- 0.2% if China's rare earth exports are cut by half for six months.

The Commerce Ministry announced on Tuesday that China had prohibited exports of dual-use goods to 20 Japanese companies it claimed supplied the?military? of Japan.

The new rules cut off?companies from seven rare earths, and related materials that are currently on China's dual use control list. They also restrict a number of other critical minerals. The new rules ban?exports for rare earths such as dysprosium or samarium which are used in consumer electronics, aircraft, weapons, and cars. (Reporting and Writing by Yusuke OGawa; Editing and Revision by Thomas Derpinghaus).

(source: Reuters)