China Bans Dual-Use Exports to Japan Affecting South Korea

The Ministry of Commerce of China implemented an immediate ban on the export of dual-use items with potential military applications to Japan, citing national security concerns. While the ban does not target South Korea directly, the move threatens the South Korean supply chain because China provides raw materials, such as lithium and rare earths, which Japan refines into intermediate components used in South Korean electronics, batteries, and semiconductors.

In response, the South Korean Ministry of Trade, Industry and Energy convened an inspection meeting in Seoul to develop countermeasures. Officials are focusing on diversifying supply chains and expanding domestic production to mitigate risks. While the semiconductor and display sectors are considered stable due to prior diversification, the domestic battery industry remains highly dependent on Japanese materials.

Vice Industry Minister Moon Shin-hak stated that the government will manage the supply and demand of affected items to ensure there are no disruptions to production activities for domestic industries and companies.