日股大幅回落，中国稀土管制恶梦浮现

Core Viewpoint - The Japanese stock market, represented by the Nikkei average, experienced a significant decline due to China's announcement of strengthened export controls on dual-use items to Japan, raising concerns over rare earth supply and impacting investor sentiment [2][4]. Group 1: Market Reaction - On January 7, the Nikkei average closed at 51,961 points, down 556 points (1%) from the previous day, following a sell-off that began at market opening [2][4]. - The market's decline was exacerbated by profit-taking after reaching a two-month high the day before, coupled with negative investor sentiment stemming from geopolitical tensions [4]. Group 2: Impact of Export Controls - China's export controls, particularly concerning rare earth elements, are seen as a potential threat to Japan's industrial sectors, especially the automotive industry, which heavily relies on these materials [4][5]. - China accounts for over 70% of global rare earth production and more than 80% of rare earth magnets, with certain heavy rare earths used in electric vehicle motors being nearly 100% dependent on Chinese supply [4]. Group 3: Historical Context - The current situation has drawn parallels to the 2010 rare earth export restrictions imposed by China during a diplomatic dispute, which highlighted vulnerabilities in Japan's supply chains for high-tech products and automotive components [5]. - Based on past experiences, estimates suggest that if rare earth export restrictions last for three months, the production loss could amount to approximately 660 billion yen [5].