Japanese think tank warns China's rare earth supply cut could hit Japan's GDP

(ECNS) -- Japan could face losses of about 660 billion yen (approximately $4.2 billion) if China's rare earth export controls remain in place for three months, resulting in a 0.11% decline in both nominal and real annual GDP, according to an estimate by Nomura Research Institute, a Japanese economic think tank.

Reports from Japanese media NHK said the controls could have broader effects, particularly on the automotive sector.

The photo shows the Ministry of Commerce. (Photo provided to China News Service)

On April 4 last year, China's Ministry of Commerce and the General Administration of Customs announced export controls on seven categories of medium and heavy rare earth-related items, including samarium, gadolinium, terbium and dysprosium.

(By Gong Weiwei)