Japanese corporations are urging Chinese authorities to confirm that recent export restrictions will not disrupt civilian supply chains, particularly in semiconductors and electronics. The calls come as Tokyo monitors Beijing’s tightening controls on critical materials.
- China expanded export controls on 23 critical materials in December 2025.
- 180 Japanese firms reported supply chain disruptions from November to January 2026.
- Semiconductor-grade materials import delays rose 34% in Q4 2025.
- 67% of Japanese manufacturers cited gallium nitride substrate shortages.
- Potential output loss for Japan: up to 1.2% in Q1 2026.
- Japanese government preparing formal diplomatic engagement with China by early February.
Japanese industrial leaders are escalating demands for reassurance that China’s recently expanded export controls on dual-use technologies will not inadvertently affect civilian commerce. The concerns emerged after Beijing tightened restrictions on 23 key materials, including rare earth elements and certain high-purity silicon wafers, in late December 2025. Companies such as Toyota Motor Corporation, Panasonic Holdings, and Hitachi Ltd. have formally requested bilateral consultations with Chinese regulators to clarify the scope of the new rules. The move follows a 34% surge in import delays for semiconductor-grade materials from China in Q4 2025, according to Japan’s Ministry of Economy, Trade and Industry. Data shows that over 180 Japanese firms reported disruptions in production lines between November and January, with electronics and automotive sectors most affected. Specifically, 67% of surveyed manufacturers cited delays in sourcing gallium nitride substrates, a material vital for advanced power devices used in electric vehicles and 5G infrastructure. Market analysts project that prolonged uncertainty could reduce Japan’s industrial output by up to 1.2% in Q1 2026. The Tokyo Stock Exchange’s TOPIX Industrials index declined 4.1% in January amid investor concerns over supply chain reliability. Japanese export-oriented firms, including those in the machinery and precision instrument sectors, face potential revenue losses exceeding ¥280 billion ($1.8 billion) if restrictions remain unclarified by mid-March. The Japanese government is now preparing a formal diplomatic démarche, expected to be delivered to Beijing by early February. The initiative aims to establish a joint technical working group to review the classification of controlled items and prevent civilian goods from being caught in regulatory overreach. The outcome could influence broader regional trade stability, especially as South Korea and Taiwan also reassess their dependency on Chinese raw materials.