The recent Chinese moves came to open a new front of tension in East Asia, after Beijing announced the expansion of its restrictions on its exports towards Japan, in a move described as a direct economic and political escalation between the two largest economies in the region, amid growing international concerns about its repercussions on global supply chains.
According to a report by journalist Eli Lown in the Israeli newspaper “Maariv”, China has significantly expanded its export control measures against Japan, by doubling the number of Japanese companies and entities subject to strict restrictions, in a development that reflects the intensification of the dispute between Beijing and Tokyo.
The Chinese Ministry of Commerce announced the addition of 20 Japanese institutions to what is known as the “watch list,” a measure that imposes a broad ban on the export of dual-use materials, that is, civilian and military at the same time, from China to those destinations. Beijing also included 20 additional entities on a more stringent monitoring list.
This step comes as an extension of measures previously imposed last February, which initially targeted about 40 companies, in the context of an escalating Chinese policy to restrict technical and industrial cooperation with specific sectors within Japan, especially in the defense field.
According to the data, the new list included prominent institutions, including the Japanese Government Institute for Defense Research, in addition to companies affiliated with the “Matsushi Electronics” and “Matsushi Heavy Industries” groups, which reflects the expansion of the scope of targeting to include sensitive research and industrial structures.
The background to the escalation refers to previous statements by Japanese Prime Minister Sanaya Takaichi about Taiwan, when she hinted at the possibility of deploying Japanese forces if China moved militarily against the island, which Beijing considered a dangerous transgression that prompted it to take counter-economic measures.
On the other hand, the Chinese Ministry of Commerce accused Japan of not showing “remorse” and accelerating rearmament, while Japanese Defense Minister Shinjiro Koizumi defended his country’s policy, questioning the accuracy of China’s data on its defense budget.
According to an analysis issued by Bloomberg Intelligence, these measures may deepen the fragility of supply chains in Japan, especially in the defense sector, which relies heavily on the import of rare metals from China, used in the manufacture of engines, radars and missile systems.
Despite the intensity of political tension, official figures revealed a remarkable paradox, as Chinese exports to Japan increased by 7% to reach about 69 billion dollars during the first five months of the year, which reflects the continued economic interdependence despite the increasing political escalation between the two sides.
These developments indicate that the confrontation between Beijing and Tokyo goes beyond the direct political dimension, and has turned into a broad test of the balances of the global economy in a region that is considered one of the most sensitive arenas in the world.
