China's commerce ministry announced on January 7 an immediate ban on exports of dual-use goods to Japan. Japan's foreign ministry protested the move as 'extremely regrettable' and demanded its withdrawal. The measure appears to be retaliation for remarks on Taiwan by Japanese Prime Minister Sanae Takaichi.
China announced on January 6 an immediate ban on exports of dual-use items to Japan that can be used for military purposes. The move stems from an early November remark by Japanese Prime Minister Sanae Takaichi, who described a potential Chinese attack on Taiwan as an existential threat to Japan. Beijing views Taiwan as its territory and labeled the comment provocative.
Masaaki Kanai, director general of Japan's Foreign Ministry's Asian and Oceanian Affairs Bureau, lodged a protest with Shi Yong, deputy chief of mission at the Chinese Embassy in Tokyo, on the same day. Kanai called the measure 'extremely regrettable' and 'cannot be accepted,' noting it targets only Japan and 'deviates significantly from international practice.' Japan's ministry described it as 'absolutely unacceptable and deeply regrettable.'
Dual-use items include goods, software, and technologies with civilian and military applications, such as semiconductors and rare earth elements essential for drones and chips. China's export control list covers about 1,100 items, including at least seven categories of medium and heavy rare earths like samarium, gadolinium, terbium, dysprosium, and lutetium. Despite diversification efforts, China supplies around 60% of Japan's rare earth imports, according to Capital Economics.
The ban applies to military users or any purposes contributing to Japan's military strength, with violators facing legal liability. A Japanese government source called it 'symbolic,' suggesting it aims to stoke domestic criticism of Takaichi. Over a decade ago, China restricted rare earth exports to Japan during a dispute. Recent data shows no decline; November exports to Japan rose 35% to 305 metric tons.
Bilateral ties have worsened amid Japan's late December approval of a record 9 trillion yen ($58 billion) military budget, up 3.8%. China's foreign ministry questioned Japan's Taiwan motives as a pretext for military buildup. Xinhua criticized Japan's security policy shifts, while noting China's own defense budget has more than doubled in the last decade. Japan reaffirmed its non-nuclear principles in mid-December.