China Adds 20 Japanese Firms to Export Blacklist Days After Canada Trade Mission

China added 20 Japanese companies to its export control blacklist on Monday, including units of Mitsubishi Electric, Mitsubishi Heavy Industries and Komatsu. The move came three days after Canada concluded its largest-ever trade mission to Japan. International Trade Minister Maninder Sidhu led roughly 300 delegates from nearly 175 Canadian companies and organizations during the visit.

Sidhu told Reuters that Canada and Japan are discussing joint mining ventures, offtake deals and shared stockpiles of graphite and gallium. Japan still receives roughly 58 percent of its rare earth imports from China. Beijing has now restricted exports to Japan twice during the same diplomatic dispute, first in February and again this week.

Canada presented the trade mission as an opportunity for Japan to develop alternative sources for critical minerals. The timing of the latest Chinese restrictions follows those Canadian proposals.