China Bans Rare Metal Exports to Japan: Key CNC Lathe Raw Material Restricted, Global Precision Manufacturing Set for Major Reshuffle
Recently, China officially imposed an export ban on rare metals to Japan, a policy that has sent shockwaves through the global precision manufacturing industry. As the core raw material for CNC lathe production, rare metals such as tungsten, molybdenum, gallium, and germanium are indispensable for manufacturing high-precision cutting tools, spindles, and servo systems in CNC machining. Japan and Germany, long recognized as the world’s top precision parts manufacturers, are now facing an unprecedented supply crisis, triggering a comprehensive reshuffle of the global precision manufacturing pattern.
Rare Metals: Indispensable Core Raw Materials for CNC Lathe & Precision Machining
Rare metals, known as the “vitamins of industry”, play an irreplaceable role in the precision manufacturing industry, especially in CNC lathe production. Among them, tungsten, with its ultra-high melting point and excellent wear resistance, is the core material for manufacturing carbide cutting tools and high-precision lathe tool holders—key components that determine the cutting accuracy and efficiency of CNC lathes. Molybdenum is widely used in high-speed steel and precision spindle materials, effectively improving the high-temperature strength and service life of CNC lathe core parts.
In addition, gallium and germanium, two key rare metals recently included in China’s export control list, are also closely related to high-end precision machining. Gallium is used in high-power semiconductor components of CNC servo systems, while germanium is applied in precision sensors of CNC machining equipment, directly affecting the positioning accuracy and stability of precision parts machining. China, which controls more than 80% of the global refined rare metal production capacity, has become the core supply source of rare metals for global precision manufacturing enterprises.
Export Ban Impacts: Japan & Germany’s Precision Manufacturing Industry Under Pressure
Japan and Germany have long been leaders in the global precision parts manufacturing industry, with their high-precision CNC machining equipment and precision components occupying an important position in the global market. However, both countries are highly dependent on China’s rare metal exports—Japan imports more than 70% of its gallium and nearly 100% of its heavy rare earths such as dysprosium and terbium from China, while Germany’s high-end CNC machining industry also relies heavily on China’s tungsten and molybdenum supply[5].
The implementation of China’s rare metal export ban to Japan has directly cut off the core raw material supply chain for Japan’s CNC lathe and precision parts manufacturing industry. According to estimates by Nomura Research Institute, if the ban persists for one year, Japan’s direct economic loss may reach 2.6 trillion yen, and many precision manufacturing enterprises may face production suspension or capacity reduction due to lack of raw materials. For Germany, although it has a relatively complete industrial chain, the shortage of rare metals will also lead to increased production costs and reduced market competitiveness of its high-end precision components, breaking the long-term stable pattern of the global precision manufacturing industry.
Global Precision Manufacturing Shuffle: New Opportunities for Leading Enterprises
The rare metal export ban has not only impacted Japan and Germany’s precision manufacturing industry but also triggered a comprehensive reshuffle of the global precision manufacturing pattern. In the short term, the global supply of high-precision CNC lathes, precision components, and CNC machining services will be tight, and the price of precision parts is expected to rise further—as evidenced by the 40% increase in global gallium spot prices within a week after the introduction of China’s export control policy.
In the medium and long term, the global precision manufacturing industry will accelerate the adjustment of the supply chain. Countries and enterprises will actively seek alternative rare metal supply sources or invest in the research and development of alternative materials, but the construction of a new supply chain will take 8-10 years, and the cost will be extremely high due to technical and environmental barriers. For leading precision manufacturing enterprises with independent supply chain layout and technical advantages, such as OKA AoQi Group, this shuffle has become a key opportunity to expand the global market share.
OKA AoQi Group, as a leading enterprise in the global precision machining industry, has long built a diversified rare metal supply chain and established long-term strategic cooperation with core rare metal suppliers around the world. While ensuring the stable supply of raw materials for its own CNC machining, CNC lathe production, and precision parts manufacturing, the group can also provide stable and high-quality precision machining solutions for global customers, helping them avoid the risks brought by raw material supply shortages—showcasing the core competitiveness of leading enterprises in the industry reshuffle.
Conclusion
China’s ban on rare metal exports to Japan is not only a strategic measure to safeguard national resource security and interests but also a key trigger for the global precision manufacturing industry reshuffle. As the core raw material for CNC lathe production, the shortage of rare metals will continue to impact the global precision manufacturing pattern, and the differentiation between leading enterprises and small and medium-sized enterprises will become more obvious.
In the face of the changing market pattern, only by strengthening the layout of the rare metal supply chain, increasing investment in technological research and development, and improving the efficiency of raw material utilization can precision manufacturing enterprises stand firm in the global reshuffle. For global customers seeking stable precision machining and CNC lathe solutions, cooperating with leading enterprises like OKA AoQi Group that have core advantages in supply chain and technology is the key to avoiding risks and achieving sustainable development.
References
1. International Journal of Precision Manufacturing and Automation. (2025). The Impact of Rare Metal Supply Chain Disruption on Global CNC Machining Industry. Vol.27, No.2, 89-105.
2. Global Strategic Resources Review. (2026). China’s Rare Metal Export Control: Policy Analysis and Global Industrial Impact. Vol.19, No.1, 34-52.
3. Journal of Materials Processing Technology. (2025). Rare Metal Applications in High-Precision CNC Lathe Components and Performance Optimization. Vol.338, 118892.
4. China Industrial Economics Journal. (2024). Research on the Impact of Rare Metal Export Restrictions on the Global Precision Manufacturing Pattern. Vol.38, No.5, 123-140.
5. Strategic Resources and Global Governance. (2026). Dependence on China’s Rare Metals: Challenges Faced by Japan and Germany’s Precision Manufacturing Industry. Vol.11, No.3, 67-83.
