Jan. 10 (Asia Today) -- Chinese state-owned companies have told some Japanese firms they will not enter into new rare earth supply contracts, Beijing-based sources said Saturday, a move that could tighten pressure on Japan after recent tensions over Taiwan-related remarks by Japanese Prime Minister Sanae Takaichi.
Sources familiar with bilateral relations said the stance appears likely to remain in place for the time being. They added that China is also considering canceling some existing contracts.
The development follows China's announcement Tuesday that it would bar exports of dual-use materials to Japanese military end users and for purposes that contribute to boosting Japan's military capabilities, according to the sources. They said exports were halted shortly afterward, and that Saturday's reports mark the first confirmed instance of Japanese buyers being refused rare earth transactions.
Japan's foreign ministry has lodged a protest and urged China to withdraw the measures, the sources said.
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