China is reportedly considering tightening rare earth exports to Japan, China Daily reports. A measure being considered in response to Japanese PM Takaichi's remarks regarding Taiwan

"According to Nomura Research Institute, heavy rare earths such as dysprosium and terbium, used in neodymium magnets for electric vehicle motors, are almost 100 percent sourced from China. Any restrictions on these supplies would pose significant challenges to the Japanese economy as noted by the institute."

China's potential move to tighten rare earth exports to Japan signals escalating tensions tied to remarks by Japan's PM regarding Taiwan. This could disrupt crucial supply chains for Japanese manufacturers like Honda and Toyota, impacting their production capabilities, particularly in the electric vehicle sector, thereby intensifying market volatility in commodities linked to rare-earth elements.