TAIPEI (Taiwan News) — China on Tuesday announced a restriction on rare-earth material exports to 20 Japanese companies amid a continued diplomatic row with Tokyo.
China’s commerce ministry said it would halt shipments of “dual-use” materials that have civilian and military applications to 20 Japanese companies, according to The Financial Times. Another 20 companies have been placed on a new “watch list.”
The measures, effective immediately, aim to prevent Japan’s “remilitarization and its attempts to acquire nuclear weapons,” a commerce spokesperson said on Tuesday. Affiliates of Mitsubishi Heavy Industries and vehicle manufacturers Subaru and Hino Motors, as well as companies engaging in defense cooperation with Mitsubishi Heavy Industries, Kawasaki Heavy, IHI Corporation, and NEC Corporation are all affected, Financial Times said.
The restrictions follow Prime Minister Takaichi Sanae's remark in November that a Chinese invasion of Taiwan could be considered a “situation threatening Japan’s survival,” prompting Tokyo to take action. China announced a ban last month on the export of dual-use goods to Japan’s military, including gallium, germanium, antimony, and graphite, Financial Times said.
Subaru, Hino Motors, and TDK Corporation have been placed on the watch list. Subaru makes the UH-2 utility helicopter, Fuji T-5 and T-7 training aircraft, and unmanned aerial vehicles for the Japanese military. Meanwhile, truck maker Hino Motors makes military transport vehicles, and electronics supplier TDK Corporation produces electronic components for defense and aerospace.
The commerce spokesperson said that “Entities placed on the watch list may apply to be removed pursuant to Article 26 of the Regulations on Export Control of Dual-Use Items if they fulfill their obligation to cooperate with verification checks.”
IHI said it would “closely monitor the situation," according to Financial Times. NEC said it would also watch for more developments. Honda’s vice-president, Kaihara Noriya, said earlier this month that its outlook was “highly uncertain." Kaihara added, “If supplies were to be disrupted, the risk would be extremely significant.”
