Diplomatic and economic tensions between China and Japan have escalated significantly, with both nations engaging in trade restrictions and pointed political rhetoric that shows no signs of abating. The deteriorating relationship has manifested through export controls, delayed shipments, and harsh criticism from Chinese state media targeting Japan's military policies.

Export Controls and Trade Disruptions

China has implemented new export controls on "dual-use items" that could potentially be utilized by Japan's military in weaponry production. Chinese Ambassador Wu Jianghao rejected Japan's Foreign Ministry petition to retract these controls, describing China's actions as "entirely legitimate, reasonable and lawful" and essential for national security.

The trade tensions have extended beyond military-related items, affecting civilian exports as well:

Japanese officials from the government-affiliated Japan External Trade Organization confirmed that shipments have been delayed on the Chinese side since late November. Trade industry sources suggest sake may have been specifically targeted as "a symbol of Japan."

Military Tensions Over Taiwan

The current dispute stems from comments made by Japanese Prime Minister Sanae Takaichi, who suggested in November that Japan wouldn't rule out intervening if China used military force against Taiwan. China views self-governed Taiwan as its sovereign territory and has stated it would take the island by force if necessary, conducting large-scale military exercises in the region.

China's Communist Party flagship newspaper, People's Daily, responded with sharp criticism, stating: "New militarism will lead Japan back into the abyss. History serves as a stark warning, yet the Japanese right wing is repeating its old tricks."

Impact on Supply Chains

Japan's Chief Cabinet Secretary Minoru Kihara acknowledged the "serious impact on global supply chains" caused by Chinese export controls, particularly regarding rare earth elements. The dependency on Chinese rare earth imports presents a significant vulnerability:

• Import Dependency: Approximately 70% of Japan's rare earth imports come from China
• Industrial Applications: Used in electronic parts and automotive manufacturing
• Economic Impact: Already affecting Japanese industries significantly

Industry and Trade Minister Ryosei Akazawa described rare earths as "extremely important minerals" and confirmed the export controls have "already affected our country tremendously."

Strategic Diplomatic Positioning

While tensions with Japan escalated, China simultaneously strengthened ties with South Korea during President Lee Jae Myung's visit to Beijing. Lee met with Chinese leader Xi Jinping, resulting in millions in new export contracts and what Lee described as "a new chapter in the development of Korea-China relations."

Chinese state media provided extensive positive coverage of the South Korean visit, while recently warning that travel to Japan by Chinese citizens might be dangerous. Reports indicated that Chinese travelers to South Korea during New Year's had surpassed those traveling to Japan.

Government Responses

Japanese officials have indicated they are closely monitoring the situation and considering appropriate measures, though specific retaliatory actions have not been detailed. Chief Cabinet Secretary Kihara emphasized the importance of ensuring "agricultural, fisheries and other exports from Japan are smoothly carried out" but declined to specify potential countermeasures.

The Chinese approach has been notably targeted, with state media specifically criticizing Japan's "right wing" rather than the Japanese people broadly, appealing to "peace-loving Japanese people" to be "highly vigilant" toward their government's policies.

China's National Intellectual Property Administration (CNIPA) and Ministry of Industry and Information Technology (MIIT) have issued comprehensive guidance to strengthen intellectual property protection in the solar industry. The document establishes key tasks for solar companies and emphasizes protecting important supply chain links while enhancing risk management capabilities.

The guidance aims to stimulate intellectual property rights' role in building a modern solar industry system and supporting China's development as a manufacturing and intellectual property powerhouse. This initiative comes as the solar industry experiences increased patent disputes during the transition from Mono PERC to TOPCon technology.

Enhanced Patent Creation and Quality Standards

The guidance encourages solar enterprises to significantly increase research and development investment while accelerating technology advancements in critical areas. Companies must strengthen high-value patent layouts for TOPCon, back-contact, and heterojunction solar module technologies.

Solar companies must proactively reserve basic patents for advanced technologies and expand patent mining activities across upstream and downstream supply chain segments.

Streamlined Patent Examination Processes

The document establishes mechanisms to improve patent examination efficiency through national-level intellectual property protection centers. These centers will provide professional, efficient patent pre-examination services specifically for solar enterprises.

Key implementation measures include:

• Establishing intellectual property risk monitoring and early-warning mechanisms
• Providing enterprise guidance for intellectual property compliance management
• Conducting patent risk analysis to prevent infringement disputes
• Strengthening tracking and analysis of industry intellectual property risks

Specialized Dispute Resolution Framework

CNIPA and MIIT recommend that provinces with concentrated solar industries establish specialized mechanisms for efficient patent dispute resolution and administrative adjudication case handling. The guidance supports creating cross-regional joint trial mechanisms for solar patent infringement disputes.

Cross-Agency Coordination and Enforcement

The guidance establishes comprehensive information-sharing mechanisms between intellectual property management departments and industry authorities. Regular sharing of administrative adjudication case information will occur with industry and information technology authorities, state-owned assets supervision departments, and customs authorities.

Critical enforcement measures include:

• Strict adherence to solar manufacturing industry standards
• Dynamic management of compliant enterprise lists based on core patents
• Strengthened customs protection to prohibit import and export of solar products that infringe intellectual property rights
• Enhanced oversight of administrative rulings on intellectual property infringement

Overseas Protection and Brand Development

The document emphasizes enhancing overseas intellectual property rights protection assistance mechanisms for solar enterprises. Companies must improve intellectual property risk prevention during international exhibitions, product exports, and overseas investments.

Solar companies are required to actively cultivate positive images for Chinese brands while building internationally influential and well-known brands. This includes increased trademark protection efforts, monitoring overseas trademark use, and promptly handling overseas intellectual property disputes.

The guidance addresses growing intellectual property challenges as the solar industry transitions to advanced technologies, particularly following recent global settlements between major manufacturers like LONGi Green Energy Technology and JinkoSolar regarding patent disputes.

Source: https://www.mercomindia.com/china-issues-guidance-on-strengthening-solar-intellectual-property-rights