China

BYD outpaced Tesla in battery-electric vehicle deliveries by 76,964 units in Q2 2026, but its domestic NEV sales fell 39.57 percent in the first half of the year, making overseas markets the sole source of growth. Overseas NEV sales reached 792,256 units in H1 2026, up 70.65 percent year-on-year, led by Brazil, the UAE, and the United Kingdom. The expansion faces compounding trade barriers: a 27 percent EU countervailing duty on BYD BEVs is already in force, parallel duties on plug-in hybrids were announced in June 2026, and a WTO panel ruling on the BEV duties is not expected before mid-2027.

Chinese customs data show dysprosium oxide exports to Japan ceased after October 2025 and terbium oxide ended in November 2025, with May 2026 shipments described as negligible — a direct result of four overlapping MOFCOM control layers, the most targeted of which took effect January 6, 2026. Enforcement moved from licensing to prosecution in May 2026, when two people including an employee of a Japanese-funded electronics firm were detained in Dalian for attempting to ship rare-earth-containing products without permits. Japan's countermeasures include a JOGMEC-Lynas offtake covering roughly 30% of domestic heavy rare earth demand, a bilateral action plan with the United States enacted March 19, 2026, and a push for G7 floor pricing on critical minerals — but no new WTO complaint has been filed against the 2025-2026 measures.