China storage battery makers denied cybersecurity approval in Japan

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Chinese storage battery companies have been denied cybersecurity approval in Japan, despite upcoming certification requirements. This development impacts China’s market share and raises security concerns.

None of China’s storage battery manufacturers have received cybersecurity clearance from Japan’s government, as a new certification requirement approaches that mandates equipment must be approved to connect to the Japanese power grid. This development affects Chinese companies’ ability to participate in Japan’s energy market and highlights ongoing tensions over technology security.

Despite their significant market presence in China and other regions, Chinese storage battery makers have yet to secure the necessary cybersecurity approval from Japan’s authorities, according to officials familiar with the matter. The certification process is set to become mandatory soon, aiming to ensure grid security and prevent cyber threats. However, Chinese firms have decried what they describe as a ‘de facto exclusion,’ citing concerns over fairness and technical barriers.

Sources indicate that Japanese regulators have not approved any Chinese products for cybersecurity certification, even for companies with established market share in Japan. Industry insiders suggest that the certification process involves rigorous security assessments, which Chinese manufacturers have yet to meet or have chosen not to pursue, citing concerns over transparency and technical standards.

Implications for China-Japan Energy Relations

This development underscores ongoing security concerns and trade tensions between China and Japan, especially in critical infrastructure sectors like energy. The inability of Chinese manufacturers to obtain certification limits their access to Japan’s lucrative energy market, potentially affecting supply chains and regional energy cooperation. It also raises broader questions about cybersecurity standards and technological sovereignty in East Asia.

Japan’s Certification Rules and China’s Market Role

Japan has been strengthening its cybersecurity and grid security standards in recent years, especially following regional tensions and global cybersecurity concerns. The upcoming certification requirement aims to prevent cyberattacks on critical infrastructure, including power grids. Chinese manufacturers, which hold a significant share in the global storage battery market, have faced increasing scrutiny amid geopolitical tensions. Despite their global presence, Chinese firms have struggled to meet Japan’s strict cybersecurity standards, which some analysts attribute to broader diplomatic frictions and differing technical standards.

“No Chinese storage battery products have received cybersecurity approval to date.”

— an anonymous regulator

Unresolved Questions on Certification and Access

It remains unclear whether Chinese manufacturers will pursue certification actively or if Japan will modify its standards to accommodate Chinese products. Details about specific security concerns or technical barriers cited by regulators are not publicly available, and negotiations or appeals are not yet evident.

Next Steps for Chinese Manufacturers and Japanese Regulators

Chinese companies may attempt to seek certification through technical adjustments or negotiations, though no official moves have been announced. Japanese authorities are expected to review and possibly update certification standards ahead of the enforcement date, which is approaching. The situation remains fluid, with potential diplomatic discussions influencing future approvals.

Key Questions

Why has Japan not approved Chinese storage batteries for cybersecurity?

Japanese authorities cite strict security standards aimed at protecting critical infrastructure. Chinese firms have not met these standards, and there are concerns over cybersecurity risks, which they dispute.

Will Chinese companies still be able to sell storage batteries in Japan?

Without cybersecurity approval, Chinese storage batteries cannot connect to Japan’s power grid, effectively preventing their sale or use in grid-connected applications until approval is granted.

Could this lead to broader trade tensions?

Yes, the issue reflects underlying geopolitical frictions and could influence broader trade and technology negotiations between China and Japan.

What are Japan’s cybersecurity standards for energy equipment?

Japan requires rigorous cybersecurity assessments to ensure equipment does not pose risks to the power grid, involving detailed security audits and compliance with specific technical standards.

When will the certification requirement take effect?

The certification rule is set to become mandatory soon, with authorities indicating that non-compliant products will be barred from grid connection shortly.

Source: Nikkei Asia