China yesterday imposed export restrictions on dozens of Japanese firms that it said were involved in building up Tokyo’s military, escalating a months-long row.
The spat between Asia’s top two economies was sparked by comments by Japanese Prime Minister Sanae Takaichi in November last year that Japan could intervene militarily in any attack on Taiwan.
The measures announced yesterday cover exports of “dual-use” items — which can have civilian and military uses — to 20 Japanese entities, including subsidiaries of Mitsubishi Heavy Industries Ltd and Japan’s space agency.
Photo: AFP
The Chinese Ministry of Commerce added a further 20 Japanese organizations, including car manufacturer Subaru Corp, to a “watch list” requiring stricter reviews of exported items that could be used for military purposes.
“The above measures are aimed at curbing Japan’s ‘remilitarization’ and nuclear ambitions and are completely legitimate, reasonable and lawful,” the Chinese ministry said in a statement.
“Honest and law-abiding Japanese entities have nothing to worry about,” it added.
A Japanese Ministry of Economy, Trade and Industry official told Agence France-Presse that Tokyo would “take appropriate measures” after analyzing the impact of the new curbs.
Tokyo had strongly protested the measures and demanded they be overturned, said Japanese Deputy Chief Cabinet Secretary Kei Sato who called Beijing’s move “absolutely intolerable and extremely regrettable.”
China last month announced tightened controls on exports to Japan for items with potential military uses.
This fueled worries that Beijing might choke supplies of vital rare-earth minerals, some of which are included in China’s list of “dual-use” goods.
The latest move singles out Japanese industrial heavyweights, including shipbuilding and aerospace firms.
Shares in Kawasaki Heavy Industries Ltd sank almost 5 percent in Tokyo, while Mitsubishi Heavy Industries shed close to 4 percent and IHI Corp tumbled nearly 7 percent.
Several of the firms listed are active in the defense industry, manufacturing kits including ships, fighter jets and missiles for the Japanese military.
Takaichi’s government in December last year approved a record defense budget worth ￥9 trillion (US$57.78 billion) for the coming fiscal year to expand its military capabilities.
Takaichi told the Japanese parliament on Friday last week that China was intensifying attempts to change the “status quo” “by force or coercion” in the East China and the South China seas.
“Strengthening our defense capabilities is essential to protect the lives and peaceful livelihoods of our citizens, as we face the most severe and complex security environment since the end of [World War II],” Takaichi said on Monday.
Japanese firms dealing with China were already struggling with delays in getting approvals, Nagoya University of Foreign Studies professor emeritus of Japan-China relations Noriyuki Kawamura said.
“With today’s announcement, we can expect the process will be made even more stringent. I believe this will be a huge blow to companies involved,” Kawamura said.
University of Tokyo international security professor Heng Yee-kuang (衡奕匡) said that Japanese firms are major buyers of critical minerals gallium and germanium from China, with gallium nitride used in radar sensors on Japanese warships.
“Short-term impact may be limited with a stockpile to cushion the disruptions, but if the controls drag on, some damage is possible,” Heng said.
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