China Restricts Exports to Japan: Mitsubishi & Military-Linked Firms Targeted
China’s Commerce Ministry on Tuesday imposed export controls on 20 Japanese entities, including affiliates of Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fujitsu, citing national security concerns and accusing the firms of contributing to Japan’s military capabilities. A further 20 companies, including Subaru Corp, Itochu Aviation, and Mitsubishi Materials Corp, were added to a watchlist requiring individual export license applications for dual-use items.
The restrictions ban Chinese exporters from selling dual-use goods – items with both civilian and military applications – to the designated companies. The ministry also prohibited foreign organizations and individuals from re-exporting Chinese-origin dual-use items to the listed entities, stating that all ongoing related activities must cease immediately. The move escalates tensions between Beijing and Tokyo, stemming from recent statements by Japanese officials regarding Taiwan.
According to the ministry’s statement, the controls are intended to curb Japan’s “remilitarisation” and perceived nuclear ambitions. While the specific controlled items were not detailed, the restrictions target units involved in shipbuilding, aircraft engine production, and maritime machinery. Firms can apply for export licenses under “special circumstances,” but must provide written assurances that the items will not be used to enhance Japan’s military capabilities.
The Japanese space agency is among the entities facing increased scrutiny. Exporters will now be required to submit risk assessment reports alongside license applications for the watchlisted companies. China maintains that entities operating “in good faith” have no cause for concern and that the measures will not disrupt normal economic and trade exchanges.
The action follows previous tensions sparked by comments from Japanese leaders concerning Taiwan, which Beijing views as a renegade province. China’s Commerce Ministry has not publicly linked the export controls directly to those comments, but the timing suggests a connection. The move represents a significant escalation in the economic and diplomatic friction between the two nations.