On Wednesday, January 6th, the Japanese government stated that China’s ban on exporting dual-use military and civilian goods to Japan is “absolutely unacceptable and deeply regrettable,” further intensifying tensions between China and Japan.
Dual-use items refer to goods, software, or technology that can be used for both civilian and military purposes, including certain rare earth elements essential for manufacturing drones and chips.
Chief Cabinet Secretary of Japan, Toshihiro Nikai, expressed during a regular press conference on Wednesday, “This latest measure specifically targeting our country significantly deviates from international norms and is absolutely unacceptable, which is extremely regrettable. The Ministry of Foreign Affairs, the Ministry of Economy, Trade, and Industry, and our embassy in China have formally protested to the Chinese side, strongly opposing the measure and demanding its withdrawal.”
Prime Minister of Japan, Sanae Takai, made remarks on the “Taiwan contingency” in November last year, stating that China’s use of force against Taiwan could be seen as a threat to Japan’s survival, leading to tensions between China and Japan. China has never renounced the use of force to reunify Taiwan, claiming sovereignty over the island, while Taiwan rejects China’s assertions and has never been ruled by the Chinese Communist Party.
Beijing demanded that Sanae Takai retract the “Taiwan contingency” remarks, which was met with refusal. In response, an angered China began to take a series of retaliatory measures, with the latest being the announcement on Tuesday to prohibit the export of dual-use items with potential military applications to Japan.
Nikai stated, “Due to the broad scope and details of these measures, including the affected goods, there are many uncertainties. Therefore, we are currently unable to comment on the potential impact on Japanese industries. However, we will carefully study and analyze the specific details and consider necessary response measures.”
Since China restricted rare earth exports in 2010, Japan has been striving for diversified rare earth supplies, with approximately 60% of rare earth imports still coming from China. Takahide Kiuchi, an economist at the Nomura Research Institute, estimated that Japan’s total imports of dual-use goods from China amount to ¥10.7 trillion (approximately $84 billion), accounting for about 42% of Japan’s total imports from China in 2024.
According to Bloomberg, Kohei Onishi, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities, stated that as demonstrated during the US-China trade tensions of 2021-2022, interruptions in such supply chains remind manufacturers of the necessity to reduce reliance on China and achieve supply chain diversification.
As per the Japanese Ministry of Foreign Affairs, on Wednesday, Foreign Minister Taro Kono and Michael DeSombre, Assistant Secretary of State for East Asian and Pacific Affairs at the US State Department, had a phone call. The statement mentioned that the two officials “exchanged views on the current regional situation and reaffirmed close coordination between Japan and the United States.”