China Tightens Export Controls on Japanese Firms...Japanese Government Says "Unacceptable, Must Be Withdrawn"

Foreign Ministry and METI Protest to China
"Thoroughly Examine Details and Impact Before Responding"

On the 24th, the Japanese government urged China to withdraw its decision to add dozens of Japanese companies and institutions to its export control and watch lists for dual-use items (materials that can be used for both military and civilian purposes), including rare earths.

Deputy Chief Cabinet Secretary Kei Sato, the Japanese government’s deputy spokesperson, said at a press conference that day that the tightening of China’s export controls was "absolutely unacceptable and extremely regrettable," adding, "The government of our country (Japan) has lodged a strong protest and demanded that the measures be withdrawn."

Deputy Secretary Sato added, "We will closely examine the details and impact of these measures and take necessary action." He did not clearly state whether rare earths were included among the items subject to China’s export controls.

Takaichi Sanae, Prime Minister of Japan. Yonhap News

According to Kyodo News, protests to China were lodged separately by Masaki Kanai, Director-General of the Asian and Oceanian Affairs Bureau at the Ministry of Foreign Affairs, by the Ministry of Economy, Trade and Industry, and by senior officials of the Japanese Embassy in China.

China's Ministry of Commerce announced the same day that it was adding 20 companies and institutions in Japan, including Mitsubishi Shipbuilding, to its export control management list, stating that they had "participated in enhancing Japan's military capabilities." China also placed 20 companies and institutions, including Subaru, Fuji Aerospace, Eneos, Tokyo University of Science, and Sumitomo Heavy Industries, on its watch list, saying it "cannot verify the dual-use end users and end uses."

Meanwhile, Prime Minister Takaichi Sanae reiterated the existing view on relations with China in the House of Representatives (the lower house) that day, stating that Japan is "open to various forms of dialogue and is continuing communication with the Chinese side at all levels." She added, "Going forward, we will continue to respond calmly and appropriately from the standpoint of our national interest."