{"id":42220,"date":"2026-01-27T12:00:34","date_gmt":"2026-01-27T10:00:34","guid":{"rendered":"https:\/\/europeanvalues.cz\/?p=42220"},"modified":"2026-01-29T16:01:11","modified_gmt":"2026-01-29T14:01:11","slug":"winning-without-fighting-chinas-trade-pressure-on-japan","status":"publish","type":"post","link":"https:\/\/europeanvalues.cz\/en\/winning-without-fighting-chinas-trade-pressure-on-japan\/","title":{"rendered":"Winning Without Fighting: China\u2019s Trade Pressure on Japan"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"42220\" class=\"elementor elementor-42220\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-65aa5e85 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"65aa5e85\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6b2bed47\" data-id=\"6b2bed47\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f46567d elementor-widget elementor-widget-text-editor\" data-id=\"f46567d\" data-element_type=\"widget\" data-e-type=\"widget\" data-no-translation=\"\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Photo: Canva.com<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6eb2c98d elementor-widget elementor-widget-text-editor\" data-id=\"6eb2c98d\" data-element_type=\"widget\" data-e-type=\"widget\" data-no-translation=\"\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-6eb2c98d{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-528ac079 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"528ac079\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-135c63ff\" data-id=\"135c63ff\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-7db57f89 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7db57f89\" data-element_type=\"section\" data-e-type=\"section\" data-no-translation=\"\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-259a131f\" data-id=\"259a131f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2c5a2871 elementor-widget elementor-widget-text-editor\" data-id=\"2c5a2871\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>What is happening?<\/h2><p>The conflict between Beijing and Tokyo has taken on a new dimension, as earlier this month <strong>China imposed a <\/strong><a href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/china-bans-exports-dual-use-items-military-purposes-japan-2026-01-06\/\" target=\"_blank\" rel=\"noopener\"><strong>ban<\/strong><\/a><strong> on export of dual-use goods to Japan<\/strong>. The trade restriction targets a range of strategical items, including rare earth elements used in the production of high-tech electronics, electric vehicle (EV) motors, and also defence systems.<\/p><p>The restrictions are already\u00a0<strong>creating instability in Japan\u2019s domestic market<\/strong>, placing several key industries under direct pressure and highlighting the need for supply-chain diversification as a pillar of national industrial security.<\/p><h2>\u00a0<\/h2><h2>What is the broader picture?<\/h2><p>On January 6, China\u2019s Ministry of Commerce announced its intention to <strong>strengthen the export controls<\/strong> of dual-use items designed for Japan. These are defined as goods, software or technologies that can be used for both civilian and military purposes. The move is part of a series of multi-layered <strong>pressure tactics from Beijing<\/strong>, triggered by <a href=\"https:\/\/europeanvalues.cz\/en\/who-let-the-wolves-out-japans-position-on-taiwan-infuriated-china\/\" target=\"_blank\" rel=\"noopener\">remarks<\/a> from Japan\u2019s\u00a0Prime Minister Sanae Takaichi regarding a possible military assistance to Taiwan.<\/p><p>Although Beijing has not released a comprehensive list of targeted goods, based on China\u2019s <em>Catalogue of Goods Subject to Import License Administration<\/em> (<a href=\"https:\/\/www.mofcom.gov.cn\/zfxxgk\/fdzdgknr\/ztfl\/blgg\/art\/2024\/art_ed796abff91940c9b3e5502a81c9ea0f.html?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">2025<\/a>), the controls may cover <strong>certain rare earths, chemicals, or power and electrical equipment<\/strong>.<\/p><p>The <a href=\"https:\/\/mainichi.jp\/english\/articles\/20260118\/p2g\/00m\/0in\/004000c\" target=\"_blank\" rel=\"noopener\">strategy<\/a> of the Chinese authorities lies in imposing a significant <strong>administrational burden<\/strong> on Japanese companies importing rare earths. Firms would be <strong>required to provide<\/strong> <strong>detailed end-use information<\/strong>, including shipment routes, the nature of the final products manufactured in Japan, and whether they might become a subject of trade with third countries, such as the United States.<\/p><p>This measure is expected to negatively affect <strong>key Japanese high-tech <\/strong><a href=\"https:\/\/www.tradingview.com\/news\/gurufocus%3Ab73f80d79094b%3A0-rare-earth-shares-jump-after-china-bans-military-use-exports-to-japan\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\"><strong>industries<\/strong><\/a>, particularly <strong>EVs and semiconductors<\/strong>, due to delays in shipments of critical minerals. By January 15, <a href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/japan-says-chinas-dual-use-export-ban-unacceptable-rare-earths-crosshairs-2026-01-07\/\" target=\"_blank\" rel=\"noopener\">market reactions<\/a> were already visible: <a href=\"https:\/\/www.asahi.com\/ajw\/articles\/16286314\" target=\"_blank\" rel=\"noopener\">Stocks<\/a> of some biggest firms had fallen \u2013 Tokyo\u2019s Nikkei 225 fell 0.9%, with technology-related stocks underperforming, while chipmaker Tokyo Electron, Japan\u2019s third most valuable company in terms of market cap, saw its shares decline 3.3%.<\/p><p>Another area of concern is <strong>energy stability<\/strong>. Japan generates roughly 10% of its electricity form solar power, based on its renewable energy strategy, with its 7<sup>th<\/sup> Strategic Energy Plan finalized in early 2025 with a goal of 40-50% renewables by 2040. However, it remains almost entirely <strong>dependent on imports of <\/strong><a href=\"https:\/\/www.japantimes.co.jp\/environment\/2026\/01\/18\/energy\/china-solar-supply-chain-issues\/\" target=\"_blank\" rel=\"noopener\"><strong>Chinese solar panels<\/strong><\/a> and its key components. In the light of latest escalation, this dependence shows as a critical <strong>strategic vulnerability<\/strong>.<\/p><p>While Japan has managed to significantly reduce its reliance on Chinese rare earths from around 90% in 2010 to roughly 60% today, further diversification is increasingly difficult and costly. China retains a <a href=\"https:\/\/rareearthexchanges.com\/news\/rare-earth-processing-2025-global-capacity-and-key-players\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">near-monopoly<\/a> in the global processing of several key minerals, including dysprosium and terbium. Developing alternative supply chains would require large investments and could raise costs for homeland manufacturers.<\/p><h2>\u00a0<\/h2><h2>Why does it matter?<\/h2><p>China has revealed its hand but is still winning the game. This round demonstrates how dependencies created in peacetime quickly become vulnerabilities during <a href=\"https:\/\/europeanvalues.cz\/en\/escalating-indo-pacific-rivalries-responses-from-regional-and-global-powers\/\" target=\"_blank\" rel=\"noopener\">political crises<\/a>. Beijing\u2019s actions underscore how <strong>trade is being instrumentalized as a tool of geopolitical leverage<\/strong>, forcing Tokyo to reconsider its supply-chain resilience and strategic autonomy.<\/p><p>Beyond Japan, the move also sends a broader signal to the rest of the liberal bloc about the potential misuse of trade restrictions in cases of geopolitical confrontation. For the <strong>European Union, heavily dependent on <\/strong><a href=\"https:\/\/ec.europa.eu\/eurostat\/statistics-explained\/index.php?title=International_trade_in_critical_raw_materials\" target=\"_blank\" rel=\"noopener\"><strong>Chinese imports<\/strong><\/a> for rare earths and other critical materials (up to 95% in 2024), this situation highlights the urgent need for\u00a0proactive diversification strategies\u00a0to reduce dangers of an uphill battle.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Photo: Canva.com Foto: Canva.com What is happening? The conflict between Beijing and Tokyo has taken on a new dimension, as earlier this month China imposed a ban on export of dual-use goods to Japan. The trade restriction targets a range of strategical items, including rare earth elements used in the production of high-tech electronics, electric [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":42222,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[500],"tags":[571],"class_list":["post-42220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-nadiya-yakubishyn"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Winning Without Fighting: China\u2019s Trade Pressure on Japan - European Values Center for Security Policy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/europeanvalues.cz\/en\/winning-without-fighting-chinas-trade-pressure-on-japan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Winning Without Fighting: China\u2019s Trade Pressure on Japan - European Values Center for Security Policy\" \/>\n<meta property=\"og:description\" content=\"Photo: Canva.com Foto: Canva.com What is happening? The conflict between Beijing and Tokyo has taken on a new dimension, as earlier this month China imposed a ban on export of dual-use goods to Japan. 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