China has placed 20 Japanese companies on an export control list and another 20 on a watchlist, tightening restrictions on the sale of dual-use goods that can serve both civilian and military purposes.
The move, announced by China’s Commerce Ministry, bars Chinese exporters from supplying such items to the designated firms and requires an immediate halt to ongoing related activities.
Dual-use goods refer to products and technologies that have both civilian and military applications, making them subject to heightened scrutiny under export regulations.
Companies targeted include multiple subsidiaries of Mitsubishi Heavy Industries involved in shipbuilding and the production of aircraft engines and maritime machinery, as well as divisions of Kawasaki Heavy Industries and Fujitsu, among others.
Foreign organizations or individuals are also banned from providing dual-use items originating in China to the 20 entities, the ministry said. “All ongoing related activities must cease immediately,” its statement read.
China’s Commerce Ministry did not provide detailed explanations in its statement for why the specific companies were selected, but the language emphasized compliance with export control rules governing dual-use items.
The decision affects firms operating in sectors that are often closely linked to advanced manufacturing and defense-related technologies. Shipbuilding, aircraft engines and maritime machinery are areas where dual-use components can play a critical role, serving both commercial industries and national security interests. By targeting these sectors, Beijing’s move signals a tightening of controls over sensitive supply chains.
A separate list includes 20 Japanese companies for which Chinese exporters are required to submit individual export license applications with risk assessment reports and written pledges that the dual-use items would not be used by Japan’s military.
Placement on a watchlist, meanwhile, suggests closer monitoring and the possibility of further restrictions.
Companies on the latter list include Subaru Corporation, Mitsubishi Materials Corporation and Institute of Science Tokyo, among others.
Companies on both lists could face disruptions in procurement if they rely on Chinese-made components classified as dual-use. The impact will depend on the extent of their dependence on Chinese suppliers and the availability of alternative sources.
The move comes amid continued tensions between China and Japan over earlier comments by Japanese Prime Minister Sanae Takaichi, who in November implied Japan could militarily intervene in a potential Chinese attack on Taiwan.the self-governed island Beijing claims as its own.
Beijing regards Taiwan as its own breakaway province, to be annexed by force if necessary, and bristles at any comments by foreign governments showing support for Taiwan’s sovereignty.
Takaichi’s party secured a landslide victory in parliamentary elections earlier this month, which will allow her to double down on a significant conservative shift in Japan’s security, immigration and other policies.
China Calls Measures “Legitimate”
The Chinese Commerce Ministry said the measures, aiming to curb Japan’s remilitarization and nuclear ambitions, “are entirely legitimate, reasonable, and legal.”
It added that the measures “are only aimed at a small number of Japanese entities, and the relevant measures only target dual-use items.”
“They will not affect normal economic and trade exchanges between China and Japan, and honest and law-abiding Japanese entities have absolutely nothing to worry about.”
Chinese Commerce Ministry
For the 20 companies placed on the export control list, the immediate challenge will be managing the operational implications of the ban.
For the additional 20 firms on the watchlist, the designation may serve as a warning of possible future restrictions, depending on compliance and policy developments.
As the measures take effect, businesses and policymakers in both countries will be closely watching their impact on trade flows and industrial cooperation.
The Commerce Ministry’s directive that all related activities cease immediately leaves little room for ambiguity about Beijing’s intent to enforce the new controls.
READ ALSO: President Mahama Pledges Productivity Revolution and Cocoa Value Reset
