In a world where tariffs and trade restrictions seem to be the new norm, it would be no surprise to readers that China is also playing the “game”.

As of early 2026, China has imposed export curbs (restrictions on exports from China) on around 40 Japanese companies - creating a larger dispute between the two nations. But why does this matter ?

“Dual use items” the curb focuses on which can be used both with civilian and military purposes including: high-tech materials, rare earth metals, aerospace/defence systems and advanced technology - the list contains approximately 1000+ items. The Chinese Government says the restrictions are there to prevent “remilitarisation” in Japan and the capabilities of it. But why is Japan a risk ?

This matters and links all down to one island in the East China Sea. Taiwan.

Sanaa Takaichi (Japanese Prime Minister as of February 2026) recently made comments suggesting possible military intervention in Taiwan if needed. Both countries have links to Taiwan with Japan colonising the island from 1895 to 1945 and China still believing it’s there’s since the 1949 civil war which saw the forming of the separate government in Taiwan.

For Japan this currently means firms such as Mitsubishi Heavy Industries, Kawasaki, Japans National Defence Academy and many other firms are affected via a now shortage in production of goods as well as a fall in stock prices amid the curbs been set in place.

However for China, it strengthens their economic leverage and security they hold over Japan but also third countries due to the supply chain impact with other nations. It also gives China greater national security, showing how trade barriers can affect geopolitical tensions.