Japanese Industries Worried over China’s Export Controls

Economy

Tokyo, Jan. 8 (Jiji Press)--Japanese industries are on high alert over China’s ban on exports of dual-use goods to Japan, amid Chinese media reports that rare earths crucial for the high technology sector could be among items subject to the measure.

This is not the first time that China has put political pressure on Japan over rare earth supplies.

Japan’s public and private sectors have prepared for such a circumstance by diversifying supply chains and increasing stockpiles. Still, the inclusion of rare earths in the ban would certainly deal a blow to the Japanese economy.

China on Tuesday banned Japan-bound exports of goods that can be used both for civilian purposes and for enhancing defense capabilities. While the scope of the measure is not yet clear, it is feared to include semiconductors and rare earths.

The measure came at a time when Sino-Japanese relations have been strained due mainly to Japanese Prime Minister Sanae Takaichi’s remark last November regarding a possible contingency over Taiwan, which China regards as a renegade province and aims to integrate with its mainland.

[Copyright The Jiji Press, Ltd.]

Jiji Press