Weekly News Review June 29 – July 5 2026

The 27th week of the year began with another escalation in the China-Japan trade dispute, as Beijing added 20 Japanese companies to its export control list. Meanwhile, the European Union sought clarity in its relationship with the Middle Kingdom.

The details are in our roundup.

CHINA ADDS 20 JAPANESE FIRMS TO EXPORT CONTROL LIST:

The move follows Beijing’s restrictions against Japan that started in early January.

China has expanded its export control measures against Japan by adding 20 Japanese companies to its dual-use export watch list, further escalating tensions between the two countries over security and strategic supply chains. The move was announced by China’s Ministry of Commerce on June 29 and took immediate effect.

The newly designated entities include companies active in aerospace, drones, defense electronics, machine tools, and the nuclear fuel cycle, among them Mitsui E&S, Terra Drone, ACSL, Japan Nuclear Fuel Limited, Fujitsu Network Solutions, Hitachi Advanced Systems, and several subsidiaries of OKI Electric Industry. Companies placed on the watch list remain eligible to receive Chinese dual-use goods, but exports will be subject to enhanced scrutiny and individual licensing requirements.

Under the new rules, Chinese exporters must submit risk assessments and written assurances that exported products will not be used to strengthen Japan’s military capabilities. Beijing stated that exports involving military end users or end uses that contribute to Japan’s defense capabilities will not be approved.

The latest measures build on restrictions introduced in January, when China tightened export controls on dual-use items destined for Japan amid deteriorating bilateral relations. The controls have accelerated Japanese efforts to diversify supply chains for critical materials and strategic technologies through partnerships in Australia, Africa, Europe, and India.

EU SETS OCTOBER DEADLINE FOR CHINA:

Brussels expects concrete progress in its trade dispute with Beijing by October. The focus is on market distortions, supply chains, and China’s role in critical raw materials.

The European Union is seeking greater clarity in its relationship with China: concrete progress in the ongoing trade dispute is expected by October. This expectation was outlined by EU Trade Commissioner Maroš Šefčovič during a meeting with China’s Commerce Minister Wang Wentao on Monday in Brussels. The talks took place במסגרת the EU-China Trade and Investment Consultations, a new ministerial-level format designed to strengthen bilateral dialogue. Specifically, the EU expects tangible outcomes by October in four key areas: more balanced trade and investment relations, export controls, intellectual property rights, and reform of the World Trade Organization (WTO).

At the heart of the dispute, from Brussels’ perspective, is the growing trade imbalance between the EU and China. Additional concerns include Chinese industrial overcapacity, low-cost imports, practices the EU considers unfair, and restricted market access for European companies, as reported by Euronews. Europe’s dependence on China and the close link between supply security and industrial competitiveness have become particularly evident through China’s export restrictions on several critical raw materials. Following the introduction of restrictions on certain rare earth products in April 2025, for example, supplies of these materials temporarily halted.

During the EU summit in mid-June, European leaders had already discussed adopting a tougher approach toward China. Shortly afterward, European Commission President Ursula von der Leyen announced a new diversification instrument. The initiative is intended to encourage companies to broaden their supply networks and reduce strategic dependencies on individual supplier countries.

GERMANY AND KAZAKHSTAN TO CO-OPERATE ON CRITICAL RARE EARTHS:

Economic relations are set to become more strategic and value-driven.

Kazakhstan aims to establish itself as a major producer of critical raw materials. Two years ago, then-German Chancellor Olaf Scholz agreed on closer cooperation with the Central Asian country during a state visit. This week, German Minister for Economic Affairs Katherina Reiche traveled to Kazakhstan to advance those efforts. Kazakhstan is Germany’s most important economic partner in Central Asia and its fourth-largest supplier of oil. The country also possesses 21 of the 34 raw materials that the European Union classifies as strategic. Despite this significant potential, the visit marked the first trip by a German economics minister to Kazakhstan in 19 years.

During talks between Minister Reiche and Kazakh Prime Minister Olzhas Bektenov, both sides discussed expanding cooperation in business, industry, energy, transport logistics, and critical raw materials. Bektenov advocated moving beyond traditional trade relations toward deeper industrial and technological collaboration, including local production, technology transfer, and workforce training. Without the necessary expertise and technological capabilities, Kazakhstan’s substantial raw material potential cannot be fully developed.

According to Kazakhstan’s Ministry of Industry and Construction, approximately $1 billion in private investment has flowed into the country’s mining sector over the past five years.

SWEDEN GRANTS MINING CONCESSION:

Leading Edge Materials will now initiate further steps for the rare earth project.

The Swedish rare earth project Norra Kärr has cleared an important hurdle. According to the developer, Leading Edge Materials (PDF), the Swedish government has granted its subsidiary, GREENNA Mineral AB, a mining concession for the project. The concession is valid for 25 years. In March, the Swedish mining authority Bergsstaten had already reviewed the application and forwarded it to the government for approval.

Norra Kärr is considered one of Europe’s most important deposits of heavy rare earth elements, including dysprosium, terbium, and yttrium. According to the company, a large share of these elements is hosted in the mineral eudialyte, whose metallurgical processing is technically challenging.

An immediate start of mining is not implied by the concession. Additional permitting steps under Swedish environmental law are still required for project implementation. Leading Edge Materials now plans to update its pre-feasibility study, advance the environmental permitting process, and initiate discussions with potential offtake partners and financiers.

The company is also considering reapplying for designation as a Strategic Project under the EU Critical Raw Materials Act. Such a designation could accelerate permitting and improve access to strategic financing.