Tokyo: Japan has expressed strong disapproval over China's decision to ban exports of dual-use goods, labeling it as "absolutely unacceptable and deeply regrettable" amidst rising diplomatic tensions between the two nations.
According to Thai News Agency, Japanese Chief Cabinet Secretary Minoru Kihara, speaking as the government spokesman, emphasized at a daily press briefing that the measures specifically targeting Japan contravene international norms. He described the situation as both unacceptable and deeply regrettable, though he refrained from commenting on the potential repercussions for Japanese industries, citing uncertainty over which particular products might be affected.
Dual-use items are those that can serve both civilian and military purposes, including critical rare earth minerals vital for manufacturing drones and computer chips. The current dispute traces back to a statement made by Japanese Prime Minister Sanae Takaishi last year, warning that a Chinese assault on democratic Taiwan could endanger Japan's security. China's insistence on a retraction went unheeded, prompting a series of retaliatory actions that led to Tuesday's ban on dual-use military goods exports.
Concurrently, China's state-run Shona Daily newspaper reported potential plans to intensify scrutiny on export licenses for rare earth minerals destined for Japan. Analysts are concerned this could significantly affect Japan's manufacturing sector, particularly its pivotal automotive industry.
Despite efforts to diversify its rare earth mineral sources since a similar export suspension by China in 2010, Japan remains heavily reliant, importing up to 60 percent of these minerals from its neighbor. Takahide Kiuchi, an economist at the Nomura Research Institute, warned that a three-month export halt could cost Japanese businesses approximately 660 billion yen and a year-long suspension could slash Japan's GDP by 0.43 percent. However, the latest Chinese customs data for November revealed no decline in exports, with volumes continuing to climb by 35 percent, marking the highest growth of the previous year.