Economy6d ago·30 sources

China has imposed export bans on dual-use items to Japan, citing their potential military applications and escalating a dispute over Taiwan. The ban, effective immediately, targets goods, software, and technologies with both civilian and military uses, including rare earth elements crucial for manufacturing. Japan's foreign ministry has strongly protested the move, calling it "absolutely unacceptable" and a deviation from international practice. The restrictions follow remarks by Japanese Prime Minister Sanae Takaichi regarding Taiwan, which Beijing deemed "provocative." While China has not specified the exact items banned, the move comes amid Japan's significant increase in defense spending and readjustment of its security policy. Despite fears of retaliation, recent data shows no immediate decline in rare earth exports to Japan, though past incidents suggest China has used such measures previously. The impact of the current curbs remains uncertain due to the lack of a specific list of restricted items.