The Tamesis
China intensified its trade dispute with Japan on Tuesday, imposing export restrictions on 40 Japanese companies on national security grounds.
The move is an escalation in a months-long dispute between Beijing and China that has led to a sharp decline in Chinese tourism to Japan.
The dispute between Asia’s largest economies began late last year, when Beijing was angered by comments by Japanese Prime Minister Sanae Takaichi that Japan might have to intervene militarily in any attack on self-ruled Taiwan.
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The measures announced on Tuesday cover the export of “dual-use” items – which can be used for both civilian and military purposes – to 20 Japanese entities, including five subsidiaries of Mitsubishi Heavy Industries and the Japan Space Agency.
Japan’s Commerce Ministry has added 20 more Japanese organizations, including carmaker Subaru, to a “watch list,” calling for stricter scrutiny of exports that may be used for military purposes.
This move aims to prevent Japan from “remilitarizing”
“The above measures are aimed at curbing Japan’s ‘remilitarization’ and nuclear ambitions, and are completely legitimate, reasonable and legal,” the Ministry of Commerce said in a statement.
“Honest and law-abiding Japanese entities have nothing to worry about,” it added.
An official from Japan’s Ministry of Economy, Trade and Industry told AFP that Tokyo would “take appropriate measures” after analyzing the impact of the new restrictions. The Mainichi Shimbun reported that Japan had lodged a protest.
Gao’s comments about Taiwan angered Beijing. China considers Taiwan its territory and has not ruled out seizing it by force.
The most obvious consequence is that Chinese tourists to Japan have fallen sharply – down 61% in January – after Beijing warned citizens not to travel there.
According to Japan, in December last year, J-15 fighter jets aboard the Chinese aircraft carrier Liaoning twice targeted Japanese aircraft with radar in international waters near Okinawa.
Targeting industrial heavyweights
China has reportedly suspended imports of Japanese seafood. Japan’s last two giant pandas also returned to China last month.
last month China announces tightening export controls Purchase items from Japan with potential military use.
That has raised concerns that Beijing could curb supplies of vital rare earth minerals, some of which are included in China’s list of “dual-use” goods.
The latest move specifically targets dozens of Japanese industrial giants, including shipbuilding and aerospace companies.
Kawasaki Heavy Industries shares fell nearly 5% in Tokyo, Mitsubishi Heavy Industries fell nearly 4% and IHI shares fell nearly 7%.
Several of the companies listed are indeed active in the defense industry, manufacturing equipment such as ships, fighter jets, and missiles for the Japanese military.
Japan has been moving away from its strict pacifist stance in favor of acquiring “counterattack” capabilities and easing export rules for lethal defense equipment.
“China seeks to change the status quo in local waters”
Taka city government in December approved a record defense budget for the next fiscal year worth 9 trillion yen ($58 billion) to expand its military capabilities.
Takaichi told parliament on Friday that China was stepping up attempts to change the status quo in the East and South China Seas “through force or coercion.”
“As we face the most severe and complex security environment since the end of (World War II), strengthening our defense capabilities is critical to protecting the lives and peaceful livelihoods of our citizens,” Takaichi said on Monday.
Noriyuki Kawamura, professor emeritus of Japan-China relations at Nagoya University of Foreign Studies, said Japanese companies dealing with China are already struggling with delays in getting approvals.
“Based on today’s announcement, we can expect the process to be more stringent. I believe it will be a huge blow to the companies involved,” Kawamura told AFP.
- Further editing by Jim Pollard, AFP
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