China has begun restricting exports to Japanese companies of rare earths and powerful magnets containing them, the Wall Street Journal reported on Thursday, after Beijing banned exports of dual-use items to the Japanese military.

Tensions have continued to rise between Asia’s two biggest economies, dragging out a dispute that began in early November.

China is opening an anti-dumping investigation into Japan over a chemical used in the manufacturing of semiconductors, it announced on Wednesday.

Japanese Finance Minister Satsuki Katayama said on Friday she would meet her counterparts in the United States next week to discuss rare earths supplies, and repeated Tokyo's condemnation of China over its latest export controls.

They’re at it again. China and Japan are frenemies, trading partners and uneasy neighbors with a tortured and bloody history they’re still working through. Now they're freshly at each

Tokyo is concerned at signs that Beijing may be laying the groundwork to restrict access to the metals vital to manufacturing.

China's export ban on dual-use items to Japan will only affect military firms, the commerce ministry said on Thursday, helping calm fears that Beijing might curb rare-earth shipments vital to Japan's automotive industry over Tokyo's remarks on Taiwan.

China has banned exports of some rare earth elements and other items to Japan that could be used for military purposes, straining already tense relations between the two countries following the Japanese prime minister’s recent remarks on Taiwan.

Takaichi has said her government abides by the three non-nuclear principles, but hasn’t been clear on whether that commitment will remain unchanged.