China says ban on exports of dual-use items to Japan to only hit military companies
by Joe Cash
BEIJING, Jan 8 (Reuters) – China’s export ban on dual-use products to Japan will only affect military firms, the commerce ministry said on Thursday, helping allay fears that Beijing could limit shipments of rare earths vital to Japan’s auto industry over Tokyo’s comments on Taiwan.
Dual-use products are products, software or technologies that have both civilian and military applications. These include some rare earth magnets that power motors in car parts such as side mirrors, speakers and oil pumps. They play an even bigger role in electric vehicles.
“Civilian users will not be affected,” commerce ministry spokesman He Yadong told reporters. he said. “China has always been committed to the stability and security of global production and supply chains,” he added.
He did not say whether rare earths were covered by the restrictions and did not comment when asked by state media about reports that the commerce ministry was considering whether to further tighten rare earth export licenses to Japan.
China has an export control list of about 1,100 dual-use products and technologies for which manufacturers need licenses to ship abroad, regardless of where the end user is located. This list includes at least seven medium and heavy “rare earth” categories. However, it was not specified which items might be affected by the export ban to Japan.
RELATIONS ARE DETERMINING DUE TO TAIWAN STATEMENTS
Ties between Beijing and Tokyo have worsened since Japanese Prime Minister Sanae Takaichi said in November that a Chinese attack on Taiwan threatening Japan’s survival could trigger a military response; Beijing said it was “provocative”.
“Exports to Japan for military purposes that may find military application and all other end uses that contribute to the development of Japan’s military capabilities are prohibited,” he said.
“The goal of stopping Japan’s remilitarization and nuclear ambitions is completely legitimate, justified and legal,” he added.
In the statement made by the ministry, it was stated that Japanese Deputy Foreign Minister Takehiro Funakoshi strongly protested the ban to China’s Ambassador to Japan Wu Jianghao on Thursday and demanded that China withdraw the measures.
The Chinese embassy said in a statement that Wu rejected the representations.
Last month, Japan’s cabinet approved a record spending package that included a 3.8% increase in the country’s annual military budget to 9 trillion yen ($58 billion) for the fiscal year starting in April.
(Reporting by Joe Cash; Editing by Edwina Gibbs and Louise Heavens)
