China on Tuesday imposed export restrictions against 40 Japanese entities, citing national security concerns, marking the latest escalation in a months-long dispute.
China has placed 20 Japanese companies on its export control list and added another 20 to a watch list monitoring sensitive goods, intensifying economic pressure on Tokyo and expanding the ongoing diplomatic dispute to involve some of Japan’s largest firms.
According to Beijing’s Ministry of Commerce, Chinese exporters are barred from supplying dual-use goods—those with both military and civilian applications—to the companies on the export control list. Additionally, all foreign exporters are prohibited from shipping these products to the listed entities if the items are made in China.
The twenty entities added to the export control list include subsidiaries of Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and IHI, as well as the National Defense Academy of Japan. These firms are heavily involved in the research, development, and production of military equipment ranging from ships and aircraft to radar systems and missiles.
Meanwhile, another 20 entities added to a watch list are subject to tighter oversight in the trade of dual‑use goods. Among them are automaker Subaru, whose aerospace division is involved in defense contracts, Sumitomo Heavy Industries, and the Institute of Science, Tokyo.
In its statement on the new measures, the commerce ministry described its actions as “completely just, reasonable and lawful,” stressing they were aimed at preventing Japan’s ‘remilitarization’ and blocking Tokyo’s efforts to develop nuclear weapons.
China’s actions target only a limited number of Japanese entities and apply solely to dual-use items. They do not affect normal trade between China and Japan, and firms operating in compliance have no cause for concern, the ministry added.
The dispute between Asia’s two largest economies was triggered by Japanese Prime Minister Sanae Takaichi’s November remarks that Tokyo could intervene militarily in the event of an attack on self-governed Taiwan. In response, China introduced restrictions in January on exports of critical minerals and dual‑use technologies to Japan and imposed travel curbs on its citizens visiting the country, dealing a significant blow to Japan’s tourism sector.
The latest measures underscore Beijing’s intensified and more targeted use of its export control regime to exert strategic pressure on Tokyo.
Japanese trade bodies stated that they will adopt ‘appropriate measures’ after assessing the impact of new export restrictions.
INSPIRING | UK Dairy and Red Meat Exports Top £4bn on Global Demand
