Reference News Network, January 7 report. According to Kyodo News, on January 7, the Tokyo stock market fell due to concerns that China's enhanced export controls on dual-use items could affect the profits of Japanese companies.
The Nikkei Average Index, which includes 225 components, fell by about 556 points on January 7, a drop of 1.06%.
An securities market analyst said: "There is a risk that (Chinese measures) could hit corporate profits. However, the risk of further escalation of bilateral relations is not great at present, as Japan is unlikely to retaliate against China's export restrictions."
According to the website of the "Nikkei Economic News", on January 6, the Chinese government announced that it would strengthen export controls on dual-use items to Japan, cooling off the upward trend in the Japanese stock market since the beginning of the year.
China's move aims to further increase economic pressure on Japan over Japanese Prime Minister Hashimoto Yama's remarks on Taiwan. The Chinese government has not yet mentioned specific items that will be subject to stricter controls, and investors are selling stocks out of caution.
Yasuhisa Kinouchi, an economist at Nomura Research Institute, pointed out that if China tightens its control over rare earth exports, it would severely impact car production in Japan.
On January 7, the selling pressure in auto stocks was particularly obvious. The shares of Toyota Motor Corporation and Mazda Corporation fell by up to 3%, while those of Honda Motor Company, Nissan Motor Company, and Suzuki Motor Corporation also declined. Stocks of defense companies including Mitsubishi Heavy Industries and Kawasaki Heavy Industries also fell. (Translated by Ma Xiaoyun)
This is the logo of Toyota Motor Corporation taken in Tokyo, Japan on July 8, 2025 (Photo by Jia Haocheng)
Original article: toutiao.com/article/7592603851656659506/
Statement: This article represents the views of the author himself.