China announces another new trade measure against Japan as tensions rise – Winnipeg Free Press

BEIJING (AP) — China escalated trade tensions with Japan on Wednesday by opening an investigation into imported dichlorosilane, a chemical gas used in semiconductor production, a day after it imposed restrictions on exports of so-called dual-use items that could be used by the Japanese military.

China's Ministry of Commerce said in a statement that it launched an investigation following a domestic industry statement showing the price of dichlorosilane imported from Japan fell by 31% between 2022 and 2024.

“Dumping of imported products from Japan has harmed the production and operation of our domestic industries,” the ministry said.

The move comes a day after Beijing banned the export of dual-use items that could have military applications to Japan.

Beijing is showing growing dissatisfaction with Tokyo after Japan's new Prime Minister Sanae Takaichi suggested late last year that her country's military might intervene if China took action against Taiwan, an island democracy that Beijing considers its own territory.

Tensions flared again on Tuesday when Japanese lawmaker Hei Seki, who was sanctioned by China last year for “spreading misconceptions” about Taiwan and other disputed territories, visited Taiwan and called it an independent country. He, also known as Yo Kitano, was banned from entering China. He told reporters that his arrival in Taiwan showed they were “different countries.”

“I came to Taiwan… to prove this point and tell the world that Taiwan is an independent country,” Hei Seki said, according to a report by the Taiwan Central News Agency.

“The vile words of a petty villain like him do not deserve comment,” Chinese Foreign Ministry spokesman Mao Ning said when asked about his comment.

Concerns over rare earth restrictions

Masaaki Kanai, head of the Asia and Oceania Affairs Division at Japan's Foreign Ministry, called on China to abandon the trade restrictions, saying a measure that solely targets Japan and deviates from international practice is unacceptable. Japan, however, has not yet announced any retaliatory measures.

As the two countries feud, speculation has grown that China could target exports of rare earth metals to Japan, similar to the rounds of export restrictions on critical minerals it has imposed as part of its trade war with the United States.

China controls most of the world's production of heavy rare earth elements, used to make powerful, heat-resistant magnets used in industries such as defense and electric vehicles.

While the Commerce Ministry did not mention any new restrictions on rare earths, the official China Daily, considered a government mouthpiece, cited anonymous sources as saying Beijing is considering tightening exports of some rare earths to Japan. This report could not be independently confirmed.

Improved relations with South Korea contrast with dispute with Japan

As Beijing clashed with Tokyo, it set itself the task of winning the favor of another East Asian power, South Korea.

South Korean President Lee Jae-myung ended a four-day trip to China on Wednesday, his first since taking office in June. Li and Chinese President Xi Jinping oversaw the signing of cooperation agreements in areas such as technology, trade, transport and environmental protection.

As if to illustrate the contrast with trade tensions between China and Japan, Lee attended two business events where major South Korean and Chinese companies pledged cooperation.

According to South Korea's Ministry of Trade, Industry and Resources, the two sides signed 24 export contracts worth a total of $44 million.

During Lee's visit, Chinese media also reported that South Korea had overtaken Japan as the leading destination for outbound flights from mainland China during the New Year holiday.

China discourages travel to Japan, saying Japanese leaders' comments about Taiwan have created “significant risks to the personal safety and lives of Chinese citizens in Japan.”