Tokyo Urges Beijing to Revoke ‘Unacceptable’ Export Bans as Diplomatic Rift Widens

ERBIL (Kurdistan24) — The government of Japan formally demanded on Wednesday that China withdraw newly imposed export controls on dual-use goods, characterizing the measures as an "unacceptable" escalation in a rapidly deteriorating diplomatic dispute between Asia’s two largest economies.

The diplomatic protest follows a directive issued by China’s Ministry of Commerce on Tuesday, effective immediately, which prohibits the export to Japan of items that have potential military applications—a move widely interpreted as direct retaliation for recent comments made by Japanese Prime Minister Sanae Takaichi regarding the security of Taiwan.

According to Agence France-Presse (AFP), Masaaki Kanai, the director-general of the Asian and Oceanian Affairs Bureau at Japan’s Ministry of Foreign Affairs, issued a strong protest to Shi Yong, the deputy chief of mission at the Chinese embassy in Tokyo.

In a statement released late Tuesday, the ministry quoted Kanai as telling the Chinese diplomat that the export restrictions "deviate significantly from international practice, is absolutely unacceptable and deeply regrettable."

The ban, which Beijing stated was implemented to safeguard its national security and interests, has ignited fears in Tokyo of severe economic repercussions.

While the Chinese Ministry of Commerce’s initial statement did not specify every item subject to the restriction, the broad categorization of "dual-use" goods has raised alarms regarding the supply of critical materials.

The Japan Times reported that China’s dual-use export control list features more than 800 items, ranging from chemicals, electronics, and sensors to equipment and technologies used in shipping and aerospace sectors.

Strategic Ambiguity and Economic Anxiety

The lack of immediate clarity regarding the specific scope of the ban has compounded anxiety within Japan’s industrial sector.

Chief Cabinet Secretary Minoru Kihara, speaking at a regular press conference on Wednesday, noted that the details of the step taken by China remain "largely unclear."

However, he emphasized that the controls "only target Japan," a specificity that Tokyo argues is discriminatory. Kihara declined to comment on the precise impact on domestic industries, citing the numerous uncertainties surrounding the measure's implementation, according to reports from AFP and Kyodo News Agency.

Economic analysts warn that the potential fallout could be substantial. Takahide Kiuchi, an executive economist at the Nomura Research Institute, told AFP that the impact on the Japanese economy would be "extremely severe" if the controls extend to rare earth minerals.

Kiuchi estimated that a three-month ban could cost Japan approximately 660 billion yen ($4.2 billion) and reduce the nation's gross domestic product by 0.11 percent.

Of particular concern is Japan's heavy reliance on Chinese supply chains for critical minerals. According to the Japan Organization for Metals and Energy Security, Japan relied on China for approximately 70 percent of its rare earth imports as of 2024.

Kiuchi highlighted a near-total dependency in specific high-tech sectors, noting, "Particularly for rare earths like dysprosium and terbium, which are auxiliary materials for neodymium magnets used in EV (electric vehicle) motors, Japan is said to depend almost 100 percent on China."

Retaliation for Taiwan Remarks

The imposition of these economic barriers is the latest and most tangible sequence in a deepening freeze in Sino-Japanese relations, triggered by Prime Minister Takaichi's ascent to power and her outspoken stance on regional security.

The Wall Street Journal reported that Takaichi enraged Beijing in November, only weeks after her appointment, by stating that Japan could be dragged into a conflict to defend itself or allies such as the United States if China were to attack Taiwan.

In a parliamentary session cited by Kyodo News Agency, Takaichi framed a potential Chinese attack on Taiwan as a "survival-threatening situation" for Japan, a legal designation that could theoretically allow for the deployment of the Self-Defense Forces.

China, which regards Taiwan as part of its own territory and has not ruled out the use of force to seize it, views such comments as a violation of its sovereignty.

A spokesperson for China’s Ministry of Commerce stated on Tuesday that the Japanese leader had made "erroneous remarks on Taiwan, hinting at the possibility of military intervention in the Taiwan Strait."

As reported by The Japan Times, the spokesperson characterized the comments as a violation of the One-China principle and of a "malicious nature with profoundly detrimental consequences."

Beijing has demanded a retraction of the remarks, but Prime Minister Takaichi has refused, maintaining that her comments reflect longstanding, if largely unspoken, Japanese policy.

In response, China has launched a multi-pronged pressure campaign.

The Wall Street Journal noted that Beijing’s retaliation has included berating Tokyo at the United Nations, canceling flights to Japan, and threatening a ban on imports of Japanese seafood.

Additionally, the diplomatic friction has spilled over into the military domain, with Chinese and Russian warplanes conducting joint exercises in airspace near Japan, and Chinese vessels sailing close to disputed islands near Taiwan.

Weaponizing Trade

The structure of the new export ban suggests Beijing is leveraging its dominant position in global supply chains to coerce political concessions.

The Wall Street Journal observed that the move showcases the economic weapons China has at its disposal to strike back at perceived adversaries.

President Xi Jinping had previously deployed similar tactics during trade disputes with the United States, imposing tighter controls on exports of critical minerals and magnets used in applications ranging from jet fighters to computer chips.

The phrasing of the new directive leaves room for broad interpretation.

According to The Japan Times, the Ministry of Commerce stated that exports "for any other end-user purposes that could enhance Japan’s military capabilities" are prohibited.

Dylan Loh, an associate professor at Nanyang Technological University, told the publication that the wording is vague enough that it theoretically means China could hit Japanese imports "even if they were for civil use."

This strategic ambiguity appears calculated.

Global risk consultancy Teneo, cited by AFP, suggested that the ambiguous wording might be intended to press Takaichi to adopt a more conciliatory stance.

"A plausible scenario is that the commerce ministry initially rejects a small handful of license applications, creating only minor supply-chain disruption but signalling potential for broader damage in future unless Tokyo takes conciliatory action," Teneo stated in a note.

Akira Igata, a project lecturer at the Research Center for Advanced Science and Technology at the University of Tokyo, told The Wall Street Journal that "the engine of the Japanese economy is going to be impacted, potentially," referring to the ban's coverage of machine tools, electronics, sensors, and lasers—products essential to Japan’s high-tech manufacturing base.

Heigo Sato, a professor of international relations at Japan’s Takushoku University, added that the regulations allow Beijing to use these controls as "sanctions targeting the strengths of Japanese industry."

Regional and Historical Context

The current dispute evokes memories of 2010, when China temporarily halted shipments of rare earth minerals to Japan during a separate territorial dispute. The Japan Times noted that the 2010 embargo wreaked havoc across Japan’s manufacturing industry.

While today’s announcement has a narrower stated focus—targeting military use—the overwhelming reliance of Japan’s civilian tech sector on Chinese inputs means the line between military and civilian disruption remains thin.

The escalation also occurs amidst shifting regional alliances. The Japan Times reported that the measures were announced while South Korean President Lee Jae Myung was visiting Beijing.

During that visit, President Xi urged Lee to "stand on the right side of history." Both Japan and South Korea are U.S. allies that have previously aligned with Washington to counterbalance Chinese influence, but Beijing appears to be testing those alignments through differential economic pressure.

Furthermore, The Wall Street Journal reported in November that U.S. President Donald Trump had advised Takaichi not to provoke President Xi over Taiwan as the United States worked toward a trade deal with China, though the Japanese government denied that report.

Market reaction to the ban was immediate, with futures contracts on the Nikkei 225 sliding by about 1 percent following the news, according to The Japan Times. As Tokyo assesses the full scope of the restrictions, the standoff shows no signs of abating.

China’s response has included intense personal attacks on Takaichi, linking her administration with the militarism of World War II, a rhetorical escalation that suggests Beijing does not intend to let the matter drop.

As of Wednesday, Japan’s Ministry of Economy, Trade and Industry indicated via an official from its trade and economic security bureau that it was still assessing the situation, leaving Japanese manufacturers in a state of uncertainty regarding their supply chains.