The Japanese government called China’s ban on dual-use products for military purposes “absolutely unacceptable.” This measure comes amid a serious economic dispute between the two countries. Dual-use products include minerals and technologies that can be used for both civilian and military purposes.
China imposed the restrictions following remarks on Taiwan by Japanese Prime Minister Sanae Takaichi. Beijing demanded that Takaichi retract her comments, but she did not. The Japanese government said China’s measures are contrary to international practice and unacceptable.
The export restrictions could affect Japan’s industry, particularly automobile manufacturing. If China expands restrictions on rare earth minerals, it could cause significant damage to Japan’s economy. Analysts estimate that a three-month ban could cause $4.2 billion in losses, while a one-year ban could reduce GDP by 0.43%.
The Japanese government said it may take countermeasures if China expands the restrictions. Meanwhile, China has begun an investigation into Japanese products. The dispute is expected to continue, similar to the 2012 islands dispute.
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