China’s Tighter Export Controls May Be Aimed at Stabilizing Trade

Beijing, Feb. 24 (Jiji Press)–China’s latest tightening of export controls on Japanese companies may be aimed at stabilizing trade between the Asian neighbors by distinguishing companies subject to a ban on dual-use goods exports from those that are not. The Chinese Ministry of Commerce said Tuesday that 20 Japanese entities, such as companies, are subject to the ban on exports of military-civilian goods including rare earths. “Although the actual details of China’s export curbs are unclear, restrictions on aerospace companies had already been very strict,” a Japanese company executive in Beijing said. The Chinese government last month stepped up its controls on dual-use goods exports to Japan, following Japanese Prime Minister Sanae Takaichi’s remarks on a possible Taiwanese contingency. This led to many Chinese exporters avoiding rare earth exports to Japan altogether, as Beijing did not specify which companies were subject to the tighter curbs while rare earths were included in dual-use goods. In a statement released Tuesday, a ministry spokesperson said that the scope of the ban is limited to a small number of entities, arguing that the measure will not affect the ordinary economic and trade activities of the two countries. A Japanese company operating in China voiced expectations that procedures for rare earth exports would be sped up for Japanese companies not on the list of entities subject to the ban. However, a senior official of a Japanese parts maker with a facility in northeastern China said: “It’s uncertain when the list may be expanded. Increasing investment in China would remain out of the question for the foreseeable future.” END [Copyright The Jiji Press, Ltd.]