On January 6, China prohibited dual-use goods, including some rare earth elements, from being exported to Japan with immediate effect, according to a statement from the Ministry of Commerce. Duel-use goods are technologies, products, or software with both military and civilian uses. They include advanced materials, precision machinery, semiconductors, and chemical components that are essential to modern economies but can also enhance military capabilities.
By restricting such exports to Japan, China is signaling its willingness to weaponize its dominant position in certain supply chains. This is particularly significant given the deep economic interdependence between the two countries: China is Japan’s largest trading partner, and Japanese firms remain deeply embedded in Chinese manufacturing and technology ecosystems.
