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Trade World News | China Imposes Export Controls on 40 Japanese Entities
Policy & Law

China Imposes Export Controls on 40 Japanese Entities

Beijing Blacklists 20 Japanese Firms and Places 20 More on a Watch List, Restricting Dual-Use Export Controls Amid Escalating Trade and Diplomatic Tensions with Tokyo
News DeskNews DeskJune 30, 2026
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China on Monday introduced new export controls targeting 40 Japanese entities, which it accused of contributing to Japan’s ‘remilitarization,’ amid escalating tensions with Tokyo.

The Ministry of Commerce declared that 20 organizations were added to its blacklist, prohibiting them from receiving dual-use goods with potential military applications, citing national security and nonproliferation concerns.

The blacklisted entities include state-affiliated institutions such as the National Institute for Defense Studies, the Naval Systems Research Center, and the Ground Systems Research Center, along with companies including Mitsubishi Precision, MHI Logisnext, and Kawajyu Gifu Manufacturing. These entities are now prohibited from receiving dual-use items of Chinese origin, as well as related exports from foreign suppliers operating in China.

China Japan Trade Talks
Image by: Computerworld

In addition, the Ministry placed 20 more organizations, including Mitsui E&S, Terra Drone, and Hitachi Advanced Systems, on its watch list. Chinese firms exporting to these companies must now obtain special licenses, provide risk assessment reports on the Japanese recipients, and submit written assurances that the dual-use goods will not be used for military purposes.

“China’s measures are entirely justified, reasonable and lawful. They are aimed at firmly deterring Japan’s reckless pursuit of new militarism,” the Ministry statement read.
The decision comes just one week after China introduced similar restrictions on 10 U.S. entities.

Law and Legislation
Rep. Image | Source: pexels(dot)com

Tensions between Beijing and Tokyo have continued to escalate since Japanese Prime Minister Sanae Takaichi stated last year that Japan could intervene if China were to use military force against Taiwan, the self-governing island that Beijing claims as its own.

The Ministry emphasized that the restrictions apply to only a limited number of Japanese entities and are confined solely to dual-use goods. It further stated that the measures would not impact normal economic and trade relations between China and Japan and that legitimate and law-abiding Japanese organizations have no cause for concern.
The measures are seen as a diplomatic signal, reflecting Beijing’s effort to intensify pressure on Tokyo.

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This content was sourced, compiled, verified, and published by our News Desk. Readers are encouraged to verify facts independently and seek professional advice before making any decisions based on this content. For inquiries or concerns, contact us via WhatsApp at +1 (252) 421-2456 or email Mail(at)TradeWorldNews(dot)com.

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