China has implemented an immediate ban on the export of dual-use items to Japan, effective January 6, 2026. Beijing's Ministry of Commerce stated that these restrictions are specifically aimed at Japanese military companies and any end-uses that could enhance Japan's military capabilities, asserting that civilian users would not be affected. However, there are conflicting reports, with some sources, like The Wall Street Journal, indicating that China has already begun broadly restricting exports of rare earths and powerful magnets containing them to Japanese companies, extending beyond just the defense industry. This suggests a potential discrepancy between China's official pronouncement and its actual implementation. Dual-use items are defined as goods, software, and technology that possess both civilian and military applications, encompassing a wide range including rare earth minerals, high-performance computers, and precision tools. Japan is significantly reliant on China for rare earth imports, with approximately 60% of its supply coming from China. Analysts warn that a prolonged ban on these critical minerals could have severe economic consequences for Japan, potentially costing billions of dollars and impacting its GDP. This move by China is a direct response to comments made by Japanese Prime Minister Sanae Takaichi in November 2025, where she suggested that a Chinese attack on Taiwan could be deemed an existential threat to Japan, potentially triggering a military response. Beijing views these remarks as a violation of the 'One China' principle and an act of interference in its domestic affairs. In response, Japan's Ministry of Foreign Affairs has lodged a strong protest, calling the measures "absolutely unacceptable and deeply regrettable" and demanding their withdrawal. The escalation highlights deteriorating diplomatic and trade relations between the two Asian powers, with significant implications for regional stability and global supply chains reliant on these critical materials.