Japan’s business community is working to ease tensions between the Japanese and Chinese governments over Prime Minister Sanae Takaichi’s remarks about a potential Taiwan crisis a year ago. Takaichi’s remarks sparked a strong backlash from the administration of Chinese leader Xi Jinping, which advised its citizens to refrain from traveling to Japan and tightened controls on exports of military-civilian dual-use goods, including rare earths. According to the Japan National Tourism Organization, the number of Chinese visitors to Japan in January-September halved from a year before.
Goldwin, which sells outdoor clothing, said at a recent earnings briefing that sales to Chinese visitors decreased by 20% to 30%. Trade minister Ryosei Akazawa acknowledged that there are concerns within the business community about stable supplies of rare earths. The government plans to work with private companies to mitigate the impact of the export curbs by using state stockpiles and diversifying procurement sources.
A total of 40 Japanese companies have been banned from shipping dual-use goods from China in principle. Mitsubishi Heavy Industries President Eisaku Ito said that export procedures have also increased. The Tokyo-Beijing dialogue on export controls has been suspended since September last year.
The Japan Business Federation, or Keidanren, has postponed sending a delegation to China, which was scheduled for mid-November. Meanwhile, the Kansai Economic Federation is planning a mission to China at the end of the year. Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, indicated his intention to continue seeking contact with China.
Keidanren chief Yoshinobu Tsutsui echoed this.
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