China says export ban on dual-use goods to Japan targets military use only

CHINA said on Thursday that its newly announced export ban on dual-use items to Japan would apply only to military-related firms and end uses, seeking to calm fears that the move could disrupt civilian supply chains, including rare-earth materials critical to Japan’s automotive industry.

Reuters reported today that dual-use items are goods, software or technologies that can be used for both civilian and military purposes.

They include certain rare-earth magnets that power motors in automotive components such as side mirrors, speakers and oil pumps, and which are even more vital in electric vehicles.

“Civilian users will not be affected,” said He Yadong, a spokesperson for China’s Ministry of Commerce, during a press briefing.

“China has always been committed to the stability and security of global production and supply chains,” he added.

He declined to clarify whether rare-earth elements were covered under the restrictions and did not comment when asked about reports from Chinese state media suggesting the commerce ministry was considering further tightening export licences for rare earths to Japan.

China maintains an export control list of roughly 1,100 dual-use items and technologies for which manufacturers must obtain licences before shipping overseas, regardless of the destination.

The list includes at least seven categories of medium and heavy rare earths, although Beijing has not specified which products are affected by the ban on exports to Japan.

Relations between Beijing and Tokyo have worsened since Japanese Prime Minister Sanae Takaichi said in November that a Chinese attack on Taiwan threatening Japan’s survival could prompt a military response. Beijing described the remarks as “provocative”.

“Exports to Japan for military purposes, that could find a military application, and all other end-uses contributing to the enhancement of Japan’s military capabilities are prohibited,” He said.

“The objective of halting Japan’s re-militarisation and nuclear ambitions is entirely legitimate, justified and lawful,” he added.

Japan’s foreign ministry said on Tuesday, the day China announced the ban, that it had lodged a strong protest against the measures and demanded that Beijing withdraw them.

The dispute comes as Japan continues to expand its defence spending. Last month, Tokyo’s cabinet approved a record budget for the fiscal year beginning in April, including a 3.8 per cent increase in military expenditure to 9 trillion yen, or about US$58 billion. - January 8, 2025