ZGXT(SZ:000831) Sou Hu Cai Jing·2026-01-10 04:46Core Viewpoint - The Chinese government has announced a ban on all dual-use item exports to Japan, particularly targeting military users, due to Japan's erroneous statements regarding Taiwan and its over-reliance on Chinese tungsten resources. This situation raises questions about whether China's control over tungsten resources can become a new leverage point in geopolitical dynamics [1]. Group 1: Tungsten's Strategic Importance - Tungsten is recognized as a critical industrial material due to its unique physical properties, including a melting point of 3422°C and hardness close to that of diamond, making it irreplaceable in high-end manufacturing [3]. - Tungsten is essential in various applications, such as ultra-hard drill bits for drilling through rock layers and turbine blades in jet engines, which must withstand extreme temperatures [4]. - The strategic value of tungsten is further emphasized in advanced technologies, including commercial spaceflight, where key components rely on tungsten [5]. Group 2: Global Tungsten Resource Distribution - China dominates the global tungsten market, holding 70% of the world's tungsten reserves and accounting for 82.7% of global production, meaning that 8.3 tons of every 10 tons of tungsten produced worldwide comes from China [8]. - Unlike silver, which relies on imports, tungsten is a core reserve resource for China, which has established a complete industrial chain from mining to recycling, allowing it to control both upstream and downstream resources [10]. - Vietnam's Nguon Tungsten Mine poses the only significant threat to China's tungsten market dominance, making Vietnam the second-largest tungsten producer globally, although its companies have not been profitable in this sector [12]. Group 3: Implications of Export Controls - Starting January 1, 2026, China will elevate tungsten export controls to the same level as rare earths, requiring clear documentation of export destinations and purposes, reflecting long-term considerations of global geopolitical dynamics and national security [15]. - The tightening of export controls aims to prevent illegal flows of tungsten into military applications and strengthen China's control over the global tungsten supply chain, impacting countries like the U.S. and Europe that heavily rely on imported tungsten [17]. - In the context of U.S.-China competition, tungsten has emerged as a strategic asset for China, with its monopolistic advantages in tungsten resources being more reliable than those in rare earths, thus enhancing its role in global industrial upgrades and international order [19].