On Tuesday, China’s Ministry of Commerce said that all dual-use items with military purposes were banned from being exported to Japan, effective immediately. Bloomberg
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Moneycontrol07-01-2026, 11:23

China-Japan Feud Escalates: Tokyo Slams Export Controls Amid Taiwan Tensions

  • China imposed immediate export controls on dual-use items with military applications to Japan, escalating diplomatic tensions.
  • Tokyo, through Masaaki Kanai, protested the measures as "absolutely unacceptable" and demanded their withdrawal.
  • The controls are linked to Japanese PM Sanae Takaichi's remarks suggesting military intervention if China seizes Taiwan.
  • Beijing is also considering tighter export license reviews for rare earth-related items, critical for military equipment.
  • Japan relies on China for 70% of its rare earth imports, recalling a 2010 incident where China used rare earths as a weapon.

Why It Matters: China's new export controls on Japan, fueled by Taiwan remarks, deepen their diplomatic and economic rift.

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