More diplomatic and economic tensions surface between China, Japan as a bumpy week ends

China-Japan Tensions Escalate Amid Export Controls and Diplomatic Friction

Tensions between China and Japan intensified this week as both economic and political conflicts showed no signs of easing. The deteriorating relationship has now begun affecting trade flows, with Japanese exporters reporting delayed shipments to China and Beijing refusing to retract newly implemented export controls.

The Chinese Communist Party’s flagship newspaper, People’s Daily, published a scathing editorial on Friday, warning that “new militarism will lead Japan back into the abyss.” The publication specifically targeted Japan’s political right wing, stating that “history serves as a stark warning, yet the Japanese right wing is repeating its old tricks.”

China’s diplomatic offensive follows comments made in November by Japanese Prime Minister Sanae Takaichi, who suggested she wouldn’t rule out intervening if China were to use military force against Taiwan. Beijing views the self-governed island as its sovereign territory and has repeatedly stated it would take the island by force if necessary. China underscored this position with large-scale military exercises near Taiwan last month.

On Thursday, the Chinese embassy in Japan rejected a petition from Japan’s Foreign Ministry to withdraw the new export controls on “dual-use items” that could potentially be used in Japanese military equipment. Chinese Ambassador Wu Jianghao defended the measures as “entirely legitimate, reasonable and lawful,” emphasizing they were vital to China’s national security.

The economic impact has already begun materializing. Japanese officials reported that exports of agricultural and processed food products, including sake, are experiencing customs delays in China. Sources in the trade industry suggested to Kyodo News that sake may have been specifically targeted as “a symbol of Japan.” The Japan External Trade Organization confirmed that these shipment delays began in late November.

“It is important that agricultural, fisheries and other exports from Japan are smoothly carried out,” said Japan’s Chief Cabinet Secretary Minoru Kihara. “We will closely watch the situation and take appropriate measures.” However, he declined to specify what those measures might entail.

The current dispute adds another chapter to the countries’ complicated history. Japan’s colonization of Taiwan in 1895 and its brutal occupation of parts of China during the first half of the 20th century continue to influence contemporary relations. While the two nations maintain diplomatic ties and cooperate on various fronts, historical grievances frequently resurface during times of tension.

China’s rhetoric has been carefully calibrated to target Japan’s government rather than its citizens. The People’s Daily editorial specifically appealed to “peace-loving Japanese people” to be “highly vigilant” toward their government, adding that “Japan’s future lies not in the dangerous fantasies painted by the right wing, but in the thorough reckoning with its history of aggression.”

The control of rare earth minerals has emerged as a potential pressure point in the dispute. Kihara noted that Chinese export controls on rare earths have already caused a “serious impact on global supply chains.” Industry and Trade Minister Ryosei Akazawa highlighted Japan’s vulnerability, stating that approximately 70% of rare earths used in Japanese electronics and automotive industries come from China.

“Rare earths are extremely important minerals, and the export controls have already affected our country tremendously,” Akazawa said, though he declined to comment on possible retaliatory measures.

Meanwhile, China has made a point of contrasting its deteriorating relationship with Japan against warming ties with South Korea. During South Korean President Lee Jae Myung’s visit to Beijing this week, Chinese leader Xi Jinping welcomed what Lee called “a new chapter in the development of Korea-China relations.” The visit resulted in millions in new export contracts.

Chinese state media, which recently warned citizens about the dangers of traveling to Japan, provided extensive coverage of Chinese travelers choosing South Korea over Japan for New Year’s trips.

Despite the escalating tensions, a small diplomatic courtesy emerged Friday when Chinese Foreign Ministry spokesperson Mao Ning expressed condolences over the death of a former Japanese ambassador to China, suggesting that even during difficult periods, some diplomatic norms remain intact.