Japan says Chinas dual-use export ban unacceptable, rare earths in crosshairs

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FILE PHOTO: Printed Chinese and Japanese flags are seen in this illustration, July 21, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

TOKYO, Jan 7 - Japans top government spokesperson said on Wednesday that Chinas ban on exports of dual-use items to the country was absolutely unacceptable and deeply regrettable, as a diplomatic dispute between Asias top two economies ramped up.

Dual-use items are goods, software or technologies that have both civilian and military applications, including certain rare earth elements that are essential for making drones and chips.

Japanese Prime Minister Sanae Takaichi touched off the dispute with Beijing late last year by saying a Chinese attack on democratically-governed Taiwan could be deemed an existential threat to Japan. China regards Taiwan as part of its territory, a claim the island rejects.

Beijing has demanded she retract the remarks, which she has not done, prompting a series of countermeasures, the latest of which was Tuesdays ban on exports of dual-use items for military use.

A measure such as this, targeting only our country, differs significantly from international practice, is absolutely unacceptable and deeply regrettable, Japans Chief Cabinet Secretary Minoru Kihara told a daily press conference on Wednesday.

He declined to comment on the possible impact on Japanese industry, saying it remained unclear exactly what items would be targeted.

The reaction from markets to the news was relatively muted though Japanese shares were lower on Wednesday, bucking a global trend that carried U.S. and European benchmarks to record highs.

Japans broad Topix gauge of equities slid 0.55%, with a subindex of mining shares leading declines, down 3.2%.