By Joe Cash
BEIJING, Jan 8 (Reuters) – China’s export ban on dual-use items to Japan will only affect military firms, the commerce ministry said on Thursday, helping calm fears that Beijing might curb rare-earth shipments vital to Japan’s automotive industry over Tokyo’s remarks on Taiwan.
Dual-use items are goods, software or technologies that have both civilian and military applications. They include certain rare earth magnets that power motors in car parts such as side mirrors, speakers and oil pumps. They play an even bigger role in EVs.
“Civilian users will not be affected,” He Yadong, a commerce ministry spokesperson, told reporters. “China has always been committed to the stability and security of global production and supply chains,” he added.
He did not say whether rare earth elements were covered by the restrictions, and did not comment when asked about reports by state media that the commerce ministry was weighing whether to further tighten rare‑earth export licences to Japan.
China has an export control list of around 1,100 dual-use items and technologies that manufacturers require a licence for to ship overseas, wherever the end user may be. That list contains at least seven categories of medium and heavy rare earths. It has, however, not specified which items may be affected by the ban on exports to Japan.
RELATIONS DETERIORATE OVER TAIWAN REMARKS
Ties between Beijing and Tokyo have deteriorated since Japanese Prime Minister Sanae Takaichi said in November that a Chinese attack on Taiwan threatening Japan’s survival could trigger a military response, a remark that Beijing said was “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 Vice Foreign Minister Takehiro Funakoshi on Thursday strongly protested the ban to Wu Jianghao, China’s ambassador to Japan, and demanded China withdraw the measures, the ministry said in a statement.
Wu rejected the representations, the Chinese embassy said in its statement.
Last month, Japan’s cabinet approved a record spending package for the fiscal year starting in April that includes a 3.8% increase in the country’s annual military budget to 9 trillion yen ($58 billion).
(Reporting by Joe Cash; Editing by Edwina Gibbs and Louise Heavens)
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