Japan Autos at Risk From China Rare-Earth Curbs, Analysts Say

Japan’s automobile and electronics industries may face supply-chain risks after China potentially includes rare earths in tighter export restrictions, threatening production while also creating opportunities to diversify supply sources, according to analysts.

Tokyo protested China’s announcement of export controls on items destined for Japan that could have military uses, potentially impacting more than 40% of shipments by one estimate, the latest escalation in diplomatic tensions between the two Asian nations in a dispute related to Taiwan.