China added 20 Japanese entities on Monday to its export control list for dual-use items, preventing Chinese firms from selling to them without prior approval, citing Tokyo’s ambitions 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, the Chinese commerce ministry said in a statement.
Ties between China and Japan have been strained since late last year after sensitive Taiwan-related remarks by Prime Minister Sanae Takaichi and Tokyo’s decision to increase defence spending, prompting Beijing to begin imposing export controls on dual-use items in January. “China’s lawful action of listing only targets a small number of Japanese entities which does not affect the normal economic and trade exchanges between China and Japan,” the ministry said, reassuring that law-abiding Japanese entities operating “in good faith” need not worry.
“Our government has filed a stern protest and demanded the withdrawal of the steps,” Japanese Chief Cabinet Secretary Minoru Kihara said at a regular news conference, describing the measures as “absolutely unacceptable and extremely regrettable.”
Major Defence Firms Targeted
The 20 entities include Japan’s National Institute for Defence Studies, six subsidiaries of Mitsubishi Heavy Industries, Japan’s largest defence contractor; four units of missile and radar maker Mitsubishi Electric; and two subsidiaries of aircraft and submarine builder Kawasaki Heavy Industries.
Spokespeople for MHI and Mitsubishi Electric said they were assessing the announcement but declined to say whether it could affect their businesses. Dual-use items are goods, software or technology with potential military or weapons-development applications.
Chinese exporters are prohibited from selling to the entities, while foreign parties are barred from transferring or supplying China-originated dual-use items to them, effective immediately.
A Watchlist for Uncertain End Use
The ministry also placed 20 other Japanese entities on a watchlist for which it could not verify end users or final use of exported dual-use items. The watchlist deters trade with those entities but allows exporters to apply by providing a risk assessment and a written commitment not to use the items to enhance Japanese military strength.
(with input from Reuters)
