China hit dozens of Japanese companies with export restrictions as tensions between the two countries escalated.
Beijing reacted angrily in November when new Japanese Prime Minister Sanae Takaichi warned against Chinese aggression towards Taiwan, and China’s position has hardened since her landslide election victory this month. It curbed exports to 20 companies of rare-earth magnets and other minerals which it said have military applications, to slow what it called Japan’s “remilitarization.”
The companies do have defense divisions — carmaker Subaru, for instance, makes helicopters and military trucks — but “China’s measures could result in a blow to their civilian businesses,” the Financial Times reported, and force Tokyo to expand its supply chains to prevent further disruption.
