China could widen curbs on Japan’s imports, rare earths if tensions worsen: Morgan Stanley

China could launch anti-dumping investigations into Japanese imports, impose more export bans and discourage consumption of the country’s goods if it escalates a dispute with Tokyo that began in November, according to Morgan Stanley.

Beijing might also expand a temporary ban on the sale of rare earth metals – crucial components in hi-tech hardware and automobiles – to target civilian manufacturing, the New York-based multinational investment bank said in a note by a team of researchers, led by chief Asia economist Chetan Ahya.