Relations between China and Japan have taken a further downturn after China announced an immediate ban on the export of several dual-use materials to Japan, a move directly connected to recent political remarks by Japan's Prime Minister.
On Tuesday, the Ministry of Commerce of China released an official statement confirming a sweeping prohibition on shipments of certain goods, services, and technologies that possess both civilian and military functionalities. While the ministry did not list the specific materials affected, its established catalogue of regulated dual-use items includes rare earth elements, sophisticated electronic components, aerospace and aviation parts, drones, and technology related to nuclear equipment.
Rare earth elements hold vital importance across a broad spectrum of products. Their application ranges from everyday consumer electronics and vehicles to advanced military hardware, such as the F-35 fighter jets. Thus, the embargo’s scope could potentially have significant implications for Japan’s technological and defense industries.
The current state of Sino-Japanese relations has rapidly degraded since November, when Japanese Prime Minister Sanae Takaichi declared in parliament that a Chinese military invasion of Taiwan would represent a scenario threatening Japan's survival. The statement suggested the possibility of a military response by Tokyo. Taiwan remains a highly sensitive issue for Beijing, which claims the island as its territory despite never having governed it and has expressed intentions to annex it by force if deemed necessary.
Since these statements, Beijing has implemented various economic measures as pressure tactics. These have included reducing flight routes to Japan, issuing travel warnings discouraging Chinese citizens from visiting or studying in Japan, and halting seafood imports from the island nation.
Speaking on the latest export restrictions, a spokesperson from China’s commerce ministry condemned Takaichi’s comments as erroneous and an infringement on China’s internal affairs. The ministry emphasized that these remarks violate the "one-China principle" and carry severe consequences for bilateral relations.
The ministry further declared that entities or individuals worldwide found to be breaching these export controls will face legal consequences. At the time of reporting, Japan’s Ministry of Economy, Trade, and Industry had not publicly responded to the announcement.
The strategic use of control over rare earth minerals is a notable aspect of China’s broader economic and geopolitical leverage. Prior instances include China's export restrictions following disputes, such as the 2010 embargo against Japan triggered by Japan's detention of a Chinese fishing vessel captain near the contested Senkaku/Diaoyu Islands.
China’s dominance in the rare earth supply chain has previously served as a significant factor in trade conflicts, as seen during the trade tensions initiated by the United States in recent years. These minerals are essential for a range of industries worldwide, including Japan’s critical automotive sector, underscoring the potential ramifications of the restrictions.
The evolving developments reflect the precarious nature of regional security dynamics and the intricate interplay between political rhetoric and economic actions. The full extent of the export ban's impact on Japan’s industrial sectors remains to be seen as stakeholders assess supply chain vulnerabilities and potential adjustments.