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.

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)