China's Ministry of Commerce announced the addition of 20 major Japanese organizations and companies to its "export control blacklist," while immediately placing another 20 under surveillance. This move aims to regulate the export of dual-use goods applicable to both civilian and military sectors to protect national security. The ministry emphasized this is a response to the strained relations between the two countries caused by political issues regarding Taiwan.
China's Ministry of Commerce issued a statement explaining its decision to officially add 20 Japanese organizations and legal entities to the export control list. The goal is to safeguard national interests and security, while complying with international non-proliferation obligations.
The statement noted that the blacklisted organizations are involved in enhancing and strengthening Japan's military capabilities. As a result, Chinese operators are "prohibited" from exporting goods that can be applied commercially and militarily to these entities. Additionally, foreign organizations and individuals are banned from transferring or supplying such Chinese-origin goods to these listed organizations. Any ongoing activities must be halted immediately.
The 20 newly blacklisted entities include specialized technology companies and subsidiaries that supply parts and engineering support to Japan's defense sector. Key organizations include Japan's National Institute for Defense Studies, a research agency under the Ministry of Defense, Mitsubishi Electric Defense and Space Technologies Corporation, and several other Mitsubishi Group affiliates.
On the same day, China's Ministry of Commerce also announced 20 Japanese organizations, including Mitsui E&S Co., Ltd., added to a "watchlist" due to an inability to verify end-users and final use of dual-use goods. This covers sectors such as drones and nuclear fuel in Japan. Exports to these organizations will be subject to stricter scrutiny, and any military or capability-enhancing use will be strictly denied. All orders take effect immediately.
This latest development escalates a months-long tension between China and Japan. Relations severely deteriorated since November last year after Japanese Prime Minister Sanae Takaichi signaled possible military measures in response to any attack on Taiwan—an island China has repeatedly vowed to reclaim under its control, by force if necessary.
Consequently, Chinese authorities began increasing trade pressure earlier this year by banning exports of rare earth minerals, of which China is the world's largest producer and refiner, alongside other key goods potentially used for military purposes by major Japanese companies.
A spokesperson for China's Ministry of Commerce emphasized the latest measures, stating, "Japan has ventured deeply down a wrong path and is aggressively pushing what it calls a 'new form of militarism.'" "China's actions are legitimate, reasonable, and fully lawful. This decision will not affect normal economic and trade exchanges between China and Japan."