China's rare earth exports are expected to total around 10,000 tons in 2012, the lowest level in 10 years, primarily due to falling demand in Japan, the largest export market, industry sources said Wednesday.
The amount is far below China's rare earth export quota of 30,996 tons for this year, suggesting Beijing may no longer be able to use rare earth minerals as a "diplomatic card" against Japan in dealing with bilateral issues such as disputes over the Japanese-controlled, China-claimed Senkaku Islands in the East China Sea.
Along with efforts to diversify sources of rare earth imports, Japan has developed alternative materials and advanced recycling technology in a bid to shield itself from China's restriction of rare earth exports such as one that came in response to the arrest by Japan of the captain of a Chinese trawler that was involved in a run-in with two Japan Coast Guard cutters trying to shoo it away from the Senkaku Islands in September 2010.