Trade war turns strategic as China cuts military-linked supplies to Japan’s defense industry | Asia

China has fired a major economic shot at one of America’s closest Asian allies. Beijing has banned military-linked dual-use exports to Japan, targeting goods critical to defence and high-tech supply chains. The move comes amid rising diplomatic tensions, accusations of re-militarisation, and deepening rivalry in the Indo-Pacific. From drones and rare earths to advanced chips, the restrictions threaten to reshape trade, security ties and regional power balances.