China Targets Japanese Defense-Linked Firms with New Export Controls

China has barred the export of dual-use items to 20 Japanese organizations identified as suppliers to Japan’s military, according to a statement released by the Ministry of Commerce on Tuesday. The move targets several prominent Japanese companies with defence ties and comes amid heightened scrutiny over Japan’s military developments.

The blacklist includes entities affiliated with major industrial firms such as Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and IHI, all of which have defence operations. Agencies such as the Japan Aerospace Exploration Agency (JAXA) and the National Defense Academy were also named.

According to the ministry, the restrictions are designed to restrict activities linked to Japan’s military expansion and nuclear development. The measures extend to international entities and individuals, who are also prohibited from re-exporting Chinese-origin dual-use goods to the designated groups.

The announcement did not specify whether rare earth minerals fall under the new export prohibition, although such materials can be found in the restricted dual-use goods.

Exporters seeking to deal with the restricted entities may apply for special approval if there are specific reasons for the transaction, the ministry said in its release.

The Chinese authorities stated that businesses acting in accordance with the rules should not fear disruptions and emphasized that regular trade and economic cooperation between the two countries would not be affected by the changes.

Additionally, China announced stricter oversight of dual-use items exported to another set of 20 Japanese organizations, including automaker Subaru. Officials cited an inability to verify the final use of these products as the reason for the added controls.

Tensions in economic relations have escalated since Japanese Prime Minister Sanae Takaichi made remarks last year concerning a hypothetical Taiwan intervention. Last month, China had already indicated plans to intensify controls on dual-use exports.