China uses mineral dominance to squeezeJapan after Taiwan remarks – Firstpost

Tensions between China and Japan are escalating as a diplomatic dispute over Taiwan, a self-governing island Beijing claims as its own, spills into an economic showdown following Japan Prime Minister Sanae Takaichi’s remarks amid cross-strait tension.

Last week, China imposed sweeping restrictions on the export of dual-use items – goods and services that can be used both by civilians and the military.

The dispute between two Asian neighbors began in November when Takaichi made comments that suggested Japan could deploy its military if China uses force to try and seize Taiwan.

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China maintains an export control list of about 1,100 dual-use items and technologies that require licences for overseas shipments, regardless of the destination. The list includes at least seven categories of medium and heavy rare earths. It has, however, not specified which items may be affected by the ban on exports to Japan.

More from World Takaichi effect? China bans export of military-use items to Japan China bans exports of dual-use items, rare earth minerals to Japan over Taiwan feud

By imposing export curbs, Beijing is using this dominance as a strategic tool to pressure Japan. The move mirrors Beijing’s earlier strategy of leveraging supply chain dominance during its trade war with the United States.

According to reports, Japan is seeking support from G7 partners to secure critical minerals. The G7 includes the United States, Britain, Japan, France, Germany, Italy and Canada, as well as the European Union, most of whom are heavily dependent on rare earths supplies from China.

Finance ministers from the G7 nations will meet in Washington later on Monday to discuss rare earths supplies. India will also join the meeting. India’s minister Ashwini Vaishnaw is in the US for the meeting. This is the first high-level visit to the US by an Indian minister in 2026.

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China had summoned Tokyo’s ambassador and advised its citizens against travel to Japan.

China and Japan are key trading partners, but historical mistrust and friction over territorial rivalries and military spending often test those ties.

Chinese foreign ministry spokeswoman Mao Ning reported in November that Japan should “behave with dignity” and take “concrete actions, including retracting Takaichi’s statement, to repair ties."

“Simply asserting that its position (on Taiwan) remains unchanged does nothing to address China’s concerns”, she noted at a regular reports conference.

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China also launched an anti-dumping probe into dichlorosilane imports from Japan. Dichlorosilane is a precursor chemical mainly used in thin-film deposition processes in chip manufacturing and is of significant importance to integrated circuit manufacturing.

After Takaichi’s remarks, China conducted military drills which simulated a blockade of Taiwan. The drills included live-fire exercises and the launch of long-range projectiles into the Taiwan Strait, one of the world’s busiest shipping lanes, for the first time since 2022.

Takaichi faces a political test at home

Takaichi is considering calling a snap election to strengthen her parliamentary majority. It would be her first electoral test since becoming Japan’s first female prime minister in October.

Her tough stance on China resonates with right-wing voters, and a stronger mandate could give her more leeway to pursue a harder foreign policy. But Japan’s industries are already feeling the pinch from a strained supply of critical minerals, adding pressure on the government.

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