Core Viewpoint - The prices of rare metals, particularly tungsten and gallium, have surged due to China's export restrictions, reaching their highest levels in 14 years, with tungsten prices up 45% and gallium prices up 44% compared to the beginning of the year [2][4]. Group 1: Price Increases and Market Impact - Tungsten's price has increased by approximately $150 per 10 kilograms, reaching around $477.5 as of July 22, 2023, while gallium's price has risen by about $250 per kilogram, reaching approximately $827.5 [4]. - The price surge is reminiscent of the 2011 price spikes, which were also influenced by China's export controls following geopolitical tensions [4]. - Japan's companies are responding to the rising tungsten prices by sourcing from other production countries, such as Vietnam, due to the increased costs [4][5]. Group 2: Export Control Measures - Starting from August 2023, gallium has become subject to China's export controls, with a complete halt in exports expected by May 2025 [5]. - Antimony, which China produces 60% of globally, will also face export restrictions starting September 2024, with a significant reduction in supply anticipated by June 2025 [6]. - China's export control measures are seen as a response to the ongoing U.S.-China trade tensions, with potential implications for other critical minerals [6]. Group 3: Strategic Responses and Future Outlook - Japan is urged to reduce its reliance on China for critical minerals to mitigate business risks, emphasizing the need for government and corporate collaboration to secure alternative sources [7]. - There are discussions about the possibility of easing export controls on rare earths following recent U.S.-China negotiations, but the situation remains uncertain [6].