Rare Earth and Resource Nationalism: What Happened Before and After China's Embargo on Japan?

The ban on the export of rare earth elements (REE) to Japan following the 2010 Senkaku boat collision is a salient case of economic sanctions. Chinese state media’s recent consideration of REE as a weapon in the trade war with the United States has brought China’s rare earth policy back into the limelight. This article discusses China’s REE policy from a theoretical perspective of resource nationalism. After examining how China adopted resource nationalism on REE before 2010, it continued to examine how Japan’s response to the ban on REE exports had an impact on China’s rare earth policy and thus, China’s rare earth resource nationalism has grown more thorough since 2010. On the one hand, Beijing has taken countermeasures against Tokyo’s bid to decrease its dependency on China’s REE supply and deter Beijing from placing export restrictions. On the other hand, lessons from its failure to control REE prices have led to the continuation and acceleration of China’s resource nationalism concerning its REEs.