Japan Protests China's Export Curbs Over Taiwan Remarks, Citing Economic Impact

• Japan has protested China's new export curbs on dual-use items, affecting over 40% of its Chinese imports, following Japanese PM Sanae Takaichi's remarks on Taiwan.
• China announced the restrictions on Tuesday, January 6, targeting items with both commercial and military applications, citing PM Takaichi's "erroneous remarks" about military intervention in the Taiwan Strait.
• The curbs raise concerns for Japanese industries, especially those dependent on rare earths, which constitute 70% of Japan's rare earth imports from China as of 2024.
• Japan's Chief Cabinet Secretary Minoru Kihara stated the measures "deviate significantly from international practice" and vowed to analyze details for necessary responses.
• Analysts warn of significant economic impact, with potential losses of ¥660 billion for Japan if rare earth access is restricted for three months.

Why It Matters: Japan protests China's trade curbs, triggered by Taiwan remarks, impacting key industries and rare earth supply.