January 7, 2026 Chinese Ministry of Commerce announced immediate tightening of export controls on the alleged dual-use goods (civil-military dual-use items) targeted at Japan. The decision prohibits exports of:
- to nipponese customers engaged in military activities,
- any products or technologies that could Strengthen Japan's military capabilities.
This movement is simply a direct reaction to Statement by Prime Minister Sanae Takaichi on Taiwanwhich Beijing considered "mistakeable and unacceptable".
Japanese Government Response
Japanese Ministry of abroad Affairs immediately reacted, "Decisively protesting" and demanding withdrawals of measures in Chinese chargé d’affaires in Tokyo. The message stresses that:
"These measures, which intentionally only hit Japan, They're out of global practice. and are totally unacceptable and profoundly pathetic."
Chief of Cabinet of the Minister, Minoru Kihara, added that details of restrictions stay unclearand the government analyses the possible impact on industry.
Effects on stock exchange and industry
The announcement triggered a wave of sale on the Tokyo Stock Exchange:
- Nikkei 225 dropped by 556 points (–1,06%), despite evidence growth in erstwhile days,
- The decline mainly affected the automotive sector: Toyota and Mazda lost by 3%, Honda, Nissan and Suzuki besides recorded inheritances,
- Defence assets, specified as Mitsubishi dense Industries and Kawasaki dense Industries, have besides weakened.
UBS Securities analysts inform that if the restrictions are besides covered by uncommon land, the consequences will be much wider – including electronics, precision instruments, machinery and transport.
Rare lands – key hazard factor
By China Daily, Beijing Considers strengthening control over exports of certain uncommon land products Japan. These natural materials are essential for production:
- brushless engines in hybrid and electrical cars,
- fixed magnets in wind turbines,
- radar components and weapon systems.
As he pointed out Masahiro Ichikawa from Mitsui Sumitomo DS Asset Management:
"If uncommon earth exports are limited, this may rise concerns about nipponese corporations' profits – which will become an excuse for portfolio adjustments".
Geopolitical context
China’s decision shall be entered in a increasing spiral of bilateral tensions Following Takaichi's statements suggesting the possibility nipponese military action in the event of Taiwanese crisis. Beijing treats it as threat of sovereignty and corresponds to the measures Economic and strategic.
By now, China has utilized control of uncommon earth resources as a tool of force – including the US and Europe. Now Japan, as the largest importer of neodymium magnets from ChinaIt was at the heart of a fresh technological-trade war. Kind of on my own wish. I besides follow the will of the American administration, whose interests service the pattern of tension on the Beijing – Tokyo line.
Source:
- Nikkei Asia – Japanese manufacture braces as China tightens dual-use item export controls, https://asia.nikkei.com/politics/international-relations/Japan-china-tensions/Japanese-industry-braces-as-china-tightens-dual-use-item-export-controls
- China regular — China hosts tighting uncommon earth export permits to Japan, January 7, 2026
- Ministry of abroad Affairs of Japan – Statement on China’s Export Control Measures, January 7, 2026
- UBS Securities — Japan Equity strategy Note: Dual-Use Export Restrictions Impact, January 7, 2026
Leszek B. Glass
Email: [email protected]
© www.chiny24.com
