China tightens exports of dual-use items to Japan as row escalates
China on Tuesday tightened its exports to Japan of dual-use items that have both civilian and military applications, the Commerce Ministry said, with rare earths possibly included, as the worst diplomatic clash between the two sides in years expands into broader economic relations.
In the latest escalation of China’s pressure campaign following Japanese Prime Minister Sanae Takaichi’s remarks on a potential Taiwan contingency two months ago, the Chinese ministry said the export to Japan of any such items that could help enhance its military capabilities is banned.
The ministry warned that any individual or entity from any country or region that violates the updated trade rule will be held legally liable.
It said the trade curb took effect immediately to “safeguard national security” and “fulfill international obligations such as nonproliferation.”
A spokesperson for the ministry made it clear that China’s decision was made in response to Takaichi’s remarks, characterizing them as “gross interference” in its internal affairs and “extremely egregious in nature.”
Lacking details
The Chinese announcement lacks details, including which products will fall under its new restrictions.
However, industry and foreign affairs experts note that, given China’s track record of economic coercion against many trading partners when serious disagreements arise, the move could have wide-ranging repercussions for Japanese industries.
The state-run China Daily newspaper reported that Beijing is considering tightening “export permit reviews for certain rare earth-related items” to Japan.
China dominates the global supply of rare earths and other minerals essential for modern technologies, from electric vehicles to weapons systems.
Takahide Kiuchi, executive economist at Nomura Research Institute, said that “the impact on the Japanese economy would be significant” if China decided to impose full-scale restrictions on rare earth exports.
Estimated loss
Assuming a one-year duration of such a ban, Kiuchi said the estimated loss to the Japanese economy would total about 2.6 trillion yen ($16.6 billion).
He added that the Chinese government is believed to have classified various products, including those in the biotech, aerospace, and telecommunications sectors, as dual-use items.
The intensifying dispute between Asia’s two largest economies stems from Takaichi’s Nov. 7, 2025 remarks in parliament that suggested an attack on Taiwan could draw in Japanese defense forces in support of the United States.
In response, China has made various moves to pressure Japan, including urging its citizens not to visit the neighboring country and to reconsider studying there.
Many events featuring Japanese artists and content have also been canceled in China after Takaichi’s comments drew backlash from Beijing, which views Taiwan as its own territory and does not rule out the use of force to take control of the self-governing island.
