China Hits Japanese Firms with Export Controls as Tensions Rise
On Tuesday, China placed 20 Japanese companies on an export control list and an additional 20 on a watchlist, amid ongoing tensions stemming from the Japanese leader’s earlier remarks regarding Taiwan, the self-governed island that Beijing asserts as its territory. According to a statement by China’s Commerce Ministry, Chinese exporters will be prohibited from selling dual-use goods, which can serve both civilian and military purposes, to 20 Japanese companies. Targeted companies encompass various subsidiaries of Mitsubishi Heavy Industries engaged in shipbuilding and the manufacturing of aircraft engines and maritime machinery, alongside divisions of Kawasaki Heavy Industries and Fujitsu, among others.
Foreign organisations or individuals are also prohibited from supplying dual-use items originating in China to the 20 entities, the ministry stated. “All ongoing related activities must cease immediately,” its statement read. A distinct list comprises 20 Japanese companies for which Chinese exporters must submit individual export licence applications, accompanied by risk assessment reports and written pledges ensuring that the dual-use items will not be utilised by Japan’s military. Among the companies on the latter list are Subaru Corporation, Mitsubishi Materials Corporation, and the Institute of Science Tokyo, among others.
The Chinese Commerce Ministry stated that the measures, intended to address Japan’s remilitarisation and nuclear ambitions, “are entirely legitimate, reasonable, and legal.” The measures “are only aimed at a small number of Japanese entities, and the relevant measures only target dual-use items,” it added. “They will not affect normal economic and trade exchanges between China and Japan, and honest and law-abiding Japanese entities have absolutely nothing to worry about.” The decision arises in the context of ongoing tensions between China and Japan, following remarks made by Japanese Prime Minister Sanae Takaichi in November, where she suggested that Japan might consider military intervention in the event of a Chinese assault on Taiwan.
Beijing views Taiwan as its own breakaway province, to be annexed by force if necessary, and reacts strongly to any remarks from foreign governments that express support for Taiwan’s sovereignty. Takaichi’s party achieved a decisive victory in the parliamentary elections earlier this month, enabling her to reinforce a substantial conservative shift in Japan’s security, immigration, and various other policies.
