China's control on dual-use items export to Japan will cause far-reaching and deep impacts on Japan's economy, said Liu Junhong, an expert on China-Japan relations.
China on Tuesday announced bans on the export of all dual-use items to Japanese military users, for Japan's military use, and for any other end-users and end-use purposes that could help enhance Japan's military capabilities.
In an interview with China Global Television Network (CGTN), Liu said that Japan's reliance on China's rare earths and other strategic mineral resources is still significance, even though Japan has tried to diversify its supply chains by working with the United States, Europe, Australia, Vietnam, and India.
"When it comes to strategic resources, such as certain metals, particularly rare metals, rare earths, some chemical products and finished goods, Japan is highly dependent on China within the bilateral trade structure," said Liu, a research fellow at the China Institute of Contemporary International Relations.
China's dual-use export controls will have a profound impact on Japan's military sector, according to the expert.
"If the export control measures are fully implemented and result in tangible impacts, the effects on production will be twofold: broad in scope and profound in functional depth. For instance, aviation-related products will face significant challenges in finding substitutes. Japan's production model makes it challenging for a single enterprise to dominate a specific product within a particular sector," Liu said.
This means the impact would not be limited to a single company or sector, and the ripple effects could spread across multiple industries, he added.
The export controls could also raise operating costs for Japanese companies, Liu said.
Japan's firms may need to prove that their products are not used for military purposes, their end users are civilian, and their production does not enhance military capabilities, Liu said, adding that this compliance process will add costs and delay Japan's imports.
China's export controls to put broader economic pressure on Japan: expert
