While Japanese business interests support the export of high-technology items and the transfer of technology from Japan to China, these economically motivated actions may have direct and indirect impacts on Japan's national security. First, the transfer of dual-use technology to China may directly help China's military buildup. Second, high-tech exports and technology transfers may have an indirect effect by eroding Japan's technological advantages vis-à-vis China. In this article I place these concerns into a historical context and analyze the current challenges to Japan's export control policies. I offer an overview of the Japan-China trade relationship, with a special focus on high-tech trade. I then discuss changes in Japan's export controls regarding China, based on heightened security concerns. Evidence indicates that the Japanese government is ill equipped to deal with “technology leakage,” which is accelerating the erosion of Japan's technological supremacy and is not covered by its current export control regime.
