China Adds 40 Japanese Firms to Export Control Lists Over Military Concerns

China imposed new export controls Monday on 40 Japanese entities it says are contributing to the country’s remilitarization. Twenty of the entities, including multiple divisions of Mitsubishi Corporation, were moved to a control list that bars Chinese and foreign exporters from selling them dual-use items made in China, the Commerce Ministry said.

The remaining twenty entities, including Mitsui E&S, were added to a watch list that requires Chinese exporters to obtain special licenses, submit risk assessment reports and provide written pledges that the items will not be used for military purposes.

Background to the restrictions Relations between Beijing and Tokyo have grown more tense since Japanese Prime Minister Sanae Takaichi last year suggested Japan could intervene if China used military force against Taiwan. Takaichi’s government has also expanded Japan’s offensive capabilities, including longer-range missiles on remote islands and new rules allowing lethal weapons exports.

Japan plans to revise its defense and security documents by December, a step that could further increase its defense budget.

Recent developments On Monday, Japan’s Ground Self-Defense Force deployed a Type-12 missile launcher on the southernmost remote island of Minamitorishima. The Commerce Ministry said Japan has continued to accelerate remilitarization since February, when China first placed twenty Japanese companies on an export control list and twenty others on a watch list.

Earlier this month, the Chinese Coast Guard conducted patrols east of Taiwan that state media described as a pointed warning to Japan and the Philippines. The United Kingdom, Germany and France issued a joint statement last week opposing any change to the status quo between China and Taiwan.