Irked Over Taiwan Issue, China Curbs Dual-Use Exports To Japan, Says Legal Consequences For Violators

With tensions over Taiwan escalating, Asian dragon China has imposed export restrictions on dual-use items to Japan that could have military applications, signalling a new phase in the already strained ties between Beijing and Tokyo. The move was confirmed by China’s commerce ministry on Tuesday (January 6, 2025).

Dual-use goods include materials, software and technologies that serve both civilian and military purposes, ranging from advanced electronics to rare earth elements critical for drones, semiconductors and defence systems. However, Chinese officials have not named any specific items affected by the ban.

Any individual or organisation that violates the rule by transferring or providing these made-in-China products to Japanese groups and people would face legal consequences, regardless of where they are from, it said.

China dual-use items export ban: Why is Beijing tightening the screws?

The decision follows remarks made in early November 2025 by Japanese Prime Minister Sanae Takaichi, who warned that a potential Chinese attack on Taiwan could pose an existential threat to Japan. Beijing condemned the comments as “provocative,” reiterating that Taiwan remains an internal matter.

With this, Beijing had also accused Tokyo of using the issue to justify military expansion. China’s foreign ministry has since questioned Japan’s intentions, suggesting that references to Taiwan could be a pretext for building up Japan’s military capabilities and overseas deployments.

How are rising military postures shaping the dispute?

Tensions have been compounded by Japan’s recent defence decisions. In late December 2025, Tokyo approved a record defence budget for the fiscal year starting in April, marking a 3.8% increase to about 9 trillion yen ($58 billion).

Chinese state media has repeatedly criticised Japan’s evolving security posture, pointing to relaxed arms export rules, the pursuit of counterstrike capabilities and what it describes as a departure from post-war defence restraints. Although Japan reaffirmed its non-nuclear principles in mid-December, Beijing continues to view Tokyo’s strategic shift with suspicion.

Rare Earths also playing a role in standoff?

While China has not released a detailed list of restricted items, its export control regime covers around 1,100 dual-use goods, including several medium and heavy rare earth elements such as dysprosium, terbium and samarium. Despite Japan’s diversification efforts, China still accounts for roughly 60% of Japan’s rare earth imports, according to Capital Economics.

Rare earths are vital for electric vehicles, defence electronics and advanced manufacturing, making any disruption potentially costly.

Is the latest ban an economic weapon or a political signal?

Japanese officials have described the move as largely symbolic, suggesting Beijing may be seeking to apply political pressure rather than trigger immediate economic fallout. A Japanese government source told Reuters that the step could be aimed at stirring domestic criticism of PM Takaichi by unsettling business confidence.

China has previously restricted rare earth exports to Japan during diplomatic disputes more than a decade ago. However, customs data so far shows no immediate decline in shipments, with exports rising sharply in November.