Chinese President Xi Jinping has carried out back-to-back export controls aimed at Japan, testing the bond between Japan and the Donald Trump administration amid U.S.-China rivalry. China used an export ban on dual-use products that can be used for both civilian and military purposes and leveraged rare earths to pressure Japan, while sending a signal that it wants to gauge whether Trump's pledge to protect America's biggest ally in Asia remains valid in a real crisis.
According to Bloomberg on the 7th (local time), the move was interpreted as pressure aimed at remarks by Japan Prime Minister Sanae Takaichi over Taiwan. At the same time, it was seen as a direct challenge to President Donald Trump, who has publicly said the rare earths issue has been "resolved." Trump said after talks with China's top leader that the rare earths supply issue had been settled, but within just a few months China imposed export controls on Japan, putting the effectiveness of his words to the test.
China this week banned exports across a broad range of products with potential military applications, ramping up pressure on Japan. The measure was estimated to target about 40% of China's exports to Japan. China also hinted at additional controls on rare earths, taking direct aim at Japan's auto industry. It then opened an anti-dumping probe into key materials for semiconductor manufacturing, squeezing another pillar of Japan's industry.
Bloomberg analyzed that the moves show Xi launched a pressure campaign over Prime Minister Takaichi's comments on Taiwan. The rare earths export curbs also weighed on the United States. Rare earths are essential for making advanced weapons such as fighter jets and missiles, which makes this directly tied to U.S. security strategy.
The Japanese government lodged an official protest over China's recent measures but was cautious about an immediate counterresponse. Japanese automakers rely heavily on Chinese parts and rare earths in producing electric vehicles, so if retaliation escalates, economic shock would be unavoidable. Kurt Tong, a former senior U.S. diplomat, said, "Japan's basic strategy is patience, not compromise or retaliation."
Prime Minister Takaichi did not retract earlier remarks that "Japan could deploy military forces if China tries to seize Taiwan." The stance held despite repeated demands from China. The controversy drew more attention as it overlapped with a diplomatic phase in which President Trump is trying to manage tensions with China to stabilize U.S. rare earth supplies.
The Japanese government continued consultations with the United States. Prime Minister Takaichi said she recently spoke by phone with President Trump and reaffirmed the will to cooperate. Senior officials at Japan's Foreign Ministry also said they had successive contacts with the U.S. side and confirmed close cooperation. They did not disclose specifics of the discussions.
Through the latest steps, China also showed an intent to induce rifts not only with Japan but among allies in the surrounding region, including South Korea. Bloomberg said, "China's export controls are becoming a test of trilateral cooperation among South Korea, the United States and Japan, and Japan's range of strategic choices is narrowing quickly amid U.S.-China competition."