China bans dual-use goods to Japan

已複製連結

China on Tuesday banned exports of dual-use goods that can serve military purposes to Japan, a move that comes at time of heightened tensions between the two countries over Taiwan. 

The Chinese commerce ministry said in a statement that exports of such items, which can serve both civilian and military purposes, to Japanese military users and all other end-users that could help enhance Japanese military power are prohibited. 

Any individual or organization that violates the rule by transferring or providing these made-in-China products to Japanese groups and people would face legal consequences, regardless of where they are from, it said. 

The notice did not identify or describe specific items, but some exports - particularly in the technology sector such as drones and navigation systems - could be adapted for military use.
Japan's government spokesperson said the ban was "absolutely unacceptable and deeply regrettable." 

Relations between Japan and China worsened late last year after Japan's Prime Minister Sanae Takaichi said its military could get involved if China were to take action against the island of Taiwan. 

Meanwhile, China Daily reported on Tuesday that Beijing was also considering tightening the license review of rare earth exports to Japan more broadly, citing sources with knowledge of the matter.

Such a move could have sweeping implications for the
manufacturing powerhouse, including its key automotives sector, analysts say.

While Japan has sought to diversify its supply of rare
earths, around 60% of its imports still come from China.

A three-month curb on Chinese exports of rare earths could cost Japanese businesses 660 billion yen ($4.21 billion) and shave 0.11% of annual gross domestic product, Nomura Research Institute economist Takahide Kiuchi said in a note on Wednesday.

A year-long ban would knock 0.43% off GDP, he added.