China Tightens Export Controls on Japanese Firms, Citing Tokyo's Military Policies

Beijing on Monday announced additional export restrictions on 40 Japanese companies, including units of Mitsubishi Corporation, citing Japan's drift toward what it calls "new militarism." China's Ministry of Commerce placed the firms on two lists: a controlled enterprise list, which prohibits the sale of dual-use goods (usable for both civilian and military purposes), and a monitored enterprise list, which includes subsidiaries of Mitsui E&S (engines and ship equipment), Fujitsu, and Komatsu. Chinese exporters dealing with these companies must obtain special licenses, submit risk assessments of the Japanese firms, and provide written guarantees that dual-use items will not be used for military purposes.

The ministry stated that the measures are lawful and aimed at deterring Japan from its current military trajectory. Relations between China and Japan have been strained since Prime Minister Sanaye Takaiichi last year suggested Japan could intervene if China used force against Taiwan. Japan continues to bolster its defenses, including deploying longer-range missiles on Minamitorishima Island and promoting arms exports. In February, China already blacklisted 20 Japanese companies and placed 20 others under monitoring. The latest steps are a response to what Beijing calls Japan's failure to correct its course.

China maintains that self-governing Taiwan is its territory and has increased military pressure on the island. Earlier this month, Chinese coast guard vessels patrolled waters east of Taiwan, described by state media as a warning to Japan and the Philippines. Meanwhile, the United Kingdom, Germany, and France last week issued a rare joint statement condemning Chinese activities in those waters and opposing any unilateral changes to the status quo between China and Taiwan.