China Imposes Export Restrictions on 20 Japanese Entities Over Dual-Use Items

Beijing announced Monday the inclusion of 20 Japanese entities on a "blacklist" to restrict exports, depriving these groups of access to Chinese dual-use goods for civilian and military purposes, in a new escalation of tensions with Tokyo. A statement from the Chinese Ministry of Commerce said the sanctioned entities "participated in enhancing Japan's military capabilities." The aim of these restrictions is to "safeguard national security and interests" and "comply with international obligations, especially in the field of non-proliferation." Tensions between China and Japan have risen since Japanese Prime Minister Sanaye Takayuki hinted last November that Tokyo might intervene militarily if Beijing were to attack Taiwan, which it considers an integral part of its territory. Since Takayuki came to power, Japan has adopted a more proactive defense approach, moving away with US support from its post-war pacifist policy to confront China's growing military strength. Tokyo has strengthened its military capabilities and increased spending in this area, solidifying security partnerships with regional allies such as the Philippines. In a separate statement Monday, a Ministry of Commerce spokesperson said, "China's decision is fully justified," adding that it "will not affect normal economic and trade exchanges between China and Japan," which he said "has recently embarked on a wrong path." The companies sanctioned by Beijing include technology groups and specialized branches supplying the Japanese defense sector, including Mitsubishi Heavy Industries (MHI) and the National Institute for Defense Studies, a research center affiliated with Japan's Ministry of Defense. In early January, Beijing announced tighter restrictions on exports of dual-use goods to Japan. Japanese media reported restrictions on supplies of rare earth minerals from China. China holds a near-monopoly on rare earth minerals essential for manufacturing advanced technological products, such as missile guidance systems and lasers. Japan relies on China for about 70% of its rare earth minerals. Beijing had previously placed 20 Japanese companies on this blacklist in February. Monday also announced the inclusion of another 20 Japanese entities on a "watchlist" that requires exporters to conduct a thorough assessment of risks and guarantees related to dual-use products supplied to these groups.