The move by Beijing, announced on Tuesday, January 6, covers items that could have both commercial and military uses and has raised concerns about potential disruptions to Japanese industries, including automakers and rare earth dependent sectors.
Japan’s Foreign Ministry lodged the protest with Chinese Deputy Chief of Mission Shi Yong after Beijing announced the export controls.
“The measures target only our country and deviate significantly from international practice,” Japan’s Chief Cabinet Secretary Minoru Kihara reportedly said. “We intend to carefully examine and analyse the details and consider necessary responses.”
China made it clear that the curbs are a direct result of the new prime minister comments over Taiwan. “Japan’s leader recently made erroneous remarks on Taiwan, hinting at the possibility of military intervention in the Taiwan Strait,” the Chinese Ministry of Commerce spokesman said while announcing the curbs.
The impact
China’s Ministry of Commerce said all dual-use items with military and commercial applications are banned from export to Japan if they could enhance Japanese military capabilities.
Bloomberg reported that Japan imports roughly $68.4 billion in dual-use items from China which makes up about 42% of its total imports from the country in 2024.
While details remain vague, analysts told Bloomberg that the action could significantly affect Japan’s industries, including rare earths crucial for batteries, electronics, and military equipment.
According to state media China Daily, Beijing may further tighten export licences for medium and heavy rare earth items which could leave Japan facing economic blows.
As of 2024, as much as 70% of Japan’s rare earth imports came from China. Restricted access to rare earth materials for about three months could would amount to about ¥660 billion, according to Takahide Kiuchi, executive economist at the Nomura Research Institute.
Also Read: China condemns US’ ‘blatant use of force’ against Venezuela
First Published: Jan 7, 2026 8:30 PM IS
