China has imposed export restrictions on Japanese companies, adding 20 entities to its export control list and placing a further 20 on a watch list, in a move that significantly raises economic pressure on Tokyo amid deteriorating bilateral ties, multiple media outlets report.
Under the measures announced on Tuesday by China’s Ministry of Commerce, Chinese exporters are prohibited from supplying dual-use items – goods with both civilian and military applications – to the listed entities. Overseas firms are also barred from supplying such items if they originate in China.
Among the companies affected are subsidiaries of Mitsubishi Heavy Industries, Kawasaki Heavy Industries, IHI Corporation, Japan’s National Defense Academy and its space agency.
“The above measures are aimed at curbing Japan’s remilitarisation and nuclear ambitions and are completely legitimate, reasonable and lawful,” a commerce ministry statement said. “China’s lawful listing actions target only a small number of Japanese entities, relevant measures target dual-use items and do not impact normal economic (exchanges) and trade between China and Japan.”
[See more: Despite tensions, Japanese firms remain keen on China investments]
It added that “honest and law-abiding Japanese entities have nothing to worry about.”
Another 20 Japanese firms, including Subaru, were added to a watch list that subjects exports to stricter review if goods could have military applications. Beijing said companies on the list could apply for removal if they cooperate with verification requirements.
The export curbs come against the backdrop of a deepening diplomatic dispute triggered by comments late last year from Japanese Prime Minister Sanae Takaichi suggesting Tokyo could intervene militarily in a conflict over Taiwan.
Since November, China has also suspended Japanese seafood imports, restricted rare earth exports, and issued travel warnings to its citizens, contributing to a sharp drop in Chinese tourism to Japan.
