China’s Rare Earth Embargo Actually Continues against Japan

Mr. Akihiro Ohata, Minister of Economy, Trade & Industry, explained to press on Tuesday that 31 Japanese traders and users answered to Ministry’s survey there are some troubles related to China’s rare earth embargo. Ministry carried out the survey to research trade conditions between China and Japan on Japanese traders, makers and organizations for September 28-30, along which 66 rare earth traders and users provided answers. Mr. Ohata stated Japanese government hasn’t recognized Chinese rare earth shipment actually restored and the survey result suggested the actual trade conditions are obviously different from Chinese government’s official statement.

Minister Ohata expressed Japanese government strongly requests the restoration against Chinese government through a foreign embassy in Beijing within the day. This is the first demand for official responses against Chinese government on rare earth embargo problem.

Meanwhile, Mr. Ohata showed an expectation for improvement of the matter, referring to a talk between Japanese Prime Minister Naoto Kan and Chinese Premier Wen Jiabao at ASEM in Brussels on October 4.

Mr. Ohata said the Ministry continues trade survey to watch the changing conditions. On the first survey, 31 Japanese rare earth traders and users answered there are troubles in rare earth import from China on and after September 21; 3 cases in Shanghai, 7 cases in Tianjin, 2 cases in Guangzhou and 1 case in Dalian.

The referred cases were (1) the exporters are asked to submit Chinese application forms in addition to English forms to apply for export license (2) the exports cannot pass customs clearance because of “too low price,” and (3) export cargos are stopped at bonded areas or cargos for Japan are all inspected.