export-controls 18 September 2025

Japan, China discuss export controls as Tokyo balances US alliance and Beijing ties

Japan and China held their fifth export control dialogue amid escalating disputes over Beijing’s restrictions on critical rare metals, as Tokyo seeks to balance US alliance commitments with vital Chinese trade relationships.

‘At the event, the governments of Japan and China introduced their export control systems to participating Japanese and Chinese companies and other entities, and answered questions from representatives of the participants on matters of concern to them,’ Japan’s Ministry of Economy, Trade and Industry (‘METI’) said about the Tokyo meeting last week, co-chaired by officials from METI and China’s commerce ministry.

The dialogue represents continued efforts by both nations to maintain communication channels despite broader regional tensions over technology trade. METI emphasised that ‘the two countries will maintain close communication to deepen their understanding of each other’s export control systems, enhance transparency of export control measures, and ensure that normal trade is not impeded’.

The talks coincide with heightened global tensions over semiconductor and technology exports, with the United States implementing extensive export controls targeting China’s access to advanced chips and manufacturing equipment.  Under Washington’s pressure, Japan has increasingly aligned its export policies with US-led restrictions, participating in trilateral export control dialogues with the US and South Korea while maintaining separate bilateral channels with China.

China has consistently urged Japan to pursue an independent foreign policy on export controls rather than aligning with Washington’s restrictions. Beijing has previously warned it will ‘take necessary measures’ to counter Japanese export controls, with Chinese officials stating that such restrictions ‘severely threaten the stability of global semiconductor supply chains’.

Japan has been conducting ongoing discussions with China’s export control authorities on matters of concern, particularly regarding Chinese restrictions on exports of rare metals including gallium, germanium and graphite that are essential for semiconductor and battery manufacturing.

China imposed the rare metals controls in July 2023 in direct retaliation for Japan joining the US and the Netherlands in restricting exports of semiconductor manufacturing equipment to China. In April, China warned of further countermeasures after Japan expanded controls to include over a dozen additional semiconductor-related items.

Japan has been working to strengthen its own export control framework amid growing concerns about military-civil fusion and dual-use technologies. 

The bilateral dialogue reflects both countries maintaining communication channels for managing trade relationships even as geopolitical tensions persist over technology access and national security concerns.

https://www.meti.go.jp/english/press/2025/0910_001.html