Why should we limit the export of neodymium magnets? For this problem there are all kinds of assumptions, but Japanese companies manufacturing neodymium magnets gave the same answer: "The reason is that they want to get our neodymium magnets manufacturing technology." Currently, Japanese monopolized the market shares of neodymium magnets. Besides, as mentioned earlier, neodymium magnets manufacturing requires plenty of technology accumulation. In this regard, Japanese companies have accumulated technology for years. In contrast, “although China has an indispensable wealth of material in the manufacturing of neodymium magnets, but we can not create fine products." Therefore, the Chinese government announces that if other countries set up factories in China and teach us manufacturing technology, we can supply a large number of raw materials.", and one of the specific policy is to restrict exports. Definitely, the above is just Japanese magnets manufacturers’ views. 
   
"Japanese Economic News" reported that in July 2011, Hitachi Metals decided to manufacture neodymium magnets in China. It can be seen that after weighing between stable material purchasing and technology outflow risks, they still decided to guarantee purchasing first.

However, even if their plants are in China, it may not immediately lead to technology flow out. On this issue, Japanese automobile manufacturers handle the problem well. If Japanese automobile manufacturers intend to sell motor vehicles in China, they have to establish joint venture with Chinese corporations and build factories in China. China can obtain technology accordingly from joint ventures." In exchange for permission of sales of Japanese motor vehicles in the huge Chinese market, we request for instructing us technologies that require years’ accumulation, such as motor technology. In this case, it is much like that of neodymium magnets.

The Japanese auto-mobile manufacturers have been outwitted China’s intention. One Japanese technical personnel located in China admits: "Although we have to transfer technology to the joint venture, we will not bother to teach if they do not ask." In other words, even if handing over the drawings, they will not make us understand their design idea, and then new products can not be developed by others. In fact, foreign car manufacturers (has joint venture with China) have an absolute advantage in China’s auto market, and the current reality is that "China's domestic automobile manufacturers did not grow up as the Chinese government had envisaged."(above is provided by the technical staff ) .

Japanese neodymium magnets manufacturers are working hard to develop a new technology which can reduce the import of raw material from China rely on new can reduce the dependence on Chinese raw materials. However, even if research and develop the new technology, it also need time to apply the technology to manufacturing process. Therefore, Japanese neodymium magnets manufacturers should learn the wisdom of juggle in the production site from automobile manufacturers.