China restricts dual-use exports from 20 Japanese companies
China has included 20 Japanese entities on its export control list for dual-use items as of Monday, thereby restricting Chinese firms from engaging in sales to these entities without prior authorisation. This action is attributed to Tokyo’s aspirations for “remilitarisation.” The action, Beijing’s latest in a series of export curbs targeted at Tokyo, was aimed at limiting Japan’s “new type of militarism” as well as its nuclear ambitions, according to a statement from the Chinese commerce ministry. Japan’s defence ministry has yet to provide a response to a request for comment.
Ties between China and Japan have experienced strain since late last year, following sensitive remarks related to Taiwan made by Japanese Prime Minister Sanae Takaichi and Tokyo’s decision to augment defence spending. This prompted Beijing to initiate export controls on dual-use items starting in January. “China’s lawful action of listing only targets a small number of Japanese entities, the relevant measures apply only to dual-use items, which does not affect the normal economic and trade exchanges between China and Japan,” the ministry stated, reassuring that law-abiding Japanese entities operating “in good faith” need not worry.
The 20 entities encompass Japan’s Institute for Defence Studies, along with subsidiaries of Mitsubishi, Komatsu, and Fujitsu, as indicated in the ministry notice. Dual-use items refer to goods, software, or technology that possess potential applications in military or weapons development. Chinese exporters are barred from engaging in sales to the specified entities, while foreign organisations and individuals are restricted from transferring or supplying dual-use items that originate in China to these entities, with immediate effect.
The ministry additionally placed 20 other Japanese entities on a watchlist due to its inability to verify the end users or the final use of dual-use items exported to them. The watchlist serves to discourage trade with certain entities; however, it mandates that exporters seeking to engage in such trade must submit a risk assessment report along with a written assurance that dual-use items will not be utilised in any manner that could bolster Japanese military capabilities.
