Japan will decide as early as Monday whether to lodge a protest with China over its export freeze on rare earth minerals used in high-tech products, the trade minister said.
The shipments were quietly halted last month, traders say, amid the worst diplomatic spat in years between the Asian economic giants, sparked by Japan's arrest of a Chinese trawler captain in disputed waters.
Japan's Trade Minister Akihiro Ohata said: "I have heard that customs procedures on rare earths remain strict and that the situation hasn't improved.
"I will study the option of talking directly to the Chinese side about this issue," Ohata told a regular press conference, adding that he planned to make a decision as early as Monday.
China has not officially declared an export stop, but a Japanese trade ministry survey released last week found that all 31 Japanese companies handling rare earth minerals had reported disruption to shipments.
Rare earths — a group of 17 elements — are used in high-tech products ranging from flat-screen televisions to lasers to hybrid cars, and China controls more than 95 percent of the global market.
The United States and Japan are now considering filing a case against China at the World Trade Organisation, the New York Times has reported.
Such a case would be complicated by the fact that China has not acknowledged the export halt in any documents or statements, the report said.
Japanese officials have also told AFP that filing a WTO complaint is an option, after more fact-finding from traders and Chinese officials.
The bitter spat began after Japan arrested a Chinese trawler captain near disputed East China Sea islands on September 8. Japan extended his detention before releasing him last month.
China has reacted strongly, freezing high-level talks and cancelling exchange programmes. It also detained four Japanese citizens before releasing them after Japan released the trawler captain.
The Asian economic powers have shown signs of bridge-building, as Prime Minister Naoto Kan and Chinese Premier Wen Jiabao met briefly and agreed to improve ties on the sidelines of an Asia-Europe summit in Brussels.
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