China Slaps Export Controls On Japan For Dual-Use Items, Rare Earths, Could Impact Semiconductors 

More steady escalation between US-ally Japan and China has emerged, but things just got much more significant – moving from initial Chinese restrictions on things like seafood or cultural exchange events, to now Beijing announcing an immediate ban on all goods deemed dual use for Tokyo. Some rare earth elements are included in this, which impacts a range of technologies, goods, and services with both civilian and military applications.

Japanese Prime Minister Sanae Takaichi – still relatively early and fresh in her tenure – likely regrets her words from last November before her parliament, where she for the first time ever in Japan’s history suggested the Japanese military could intervene to defend Taiwan from a future Chinese invasion of the self-ruled island. However, the Chinese demand for a full public retraction and apology hasn’t come, which means Beijing is now engaged in more screw-tightening to demonstrate how serious it is.

In unveiling the new punitive measures Tuesday, a spokesperson for China’s Commerce Ministry once again hammered on Takaichi’s “erroneous” comments and that China’s national security and interests must be “safeguarded”.

“These comments constitute a crude interference in China’s internal affairs, seriously violate the one-China principle and are extremely harmful in nature and impact,” the statement said, followed by a warning that any entity or individual which violates the export ban will be held legally accountable. 

These new controls may affect shipments of semiconductors and rare earth materials to Japan’s Self-Defense Forces and defense industry firms – which is without the intent, and signals that greater punishment and damage could be further implemented at any time.

However, the fresh announcement did not identify specific importers subject to the ban, with details not disclosed, and it remaining unknown just how these controls will be implemented or handled.

Beijing in addition to citing national security, described the move as vital to non-proliferation, especially in light of Tokyo’s anti-China stance in the region.

China had already been steadily retaliating through measures related to curbing trade, cultural exchanges, and tourism – coupled with threats of more punitive action to come. There have lately been some serious military ‘close calls’ as well.

As DA Sails notes, “It’s a reminder that export controls are now a frontline geopolitical tool, not just a trade policy.”

China’s overnight announced ‘dual use’ export controls on Japan…

For example, early December saw an incident play out of Japan where Chinese PLA military aircraft locked radar on Japanese fighter jets, helping relations continue to spiral to their lowest point in many years.

All the while, Beijing has kept up its fiery denunciations, making clear there’s “no space” for ambiguity on what China sees as its territory (Taiwan). Previously the foreign ministry has explained, “China has made its serious position clear several times on Japanese Prime Minister Sanae Takaichi’s wrongful remarks on Taiwan.” And: “The remarks seriously violate the spirit of the four political documents between China and Japan, and cause fundamental damage to the political foundation of China-Japan relations.”