China Tightens Export Controls on 40 Japanese Institutions and Companies... Improvement in Bilateral Relations Remains Distant

After Takaichi's "Taiwan Contingency" Remarks,
Bilateral Relations Deteriorate Rapidly
Similar Export Controls Imposed in February

The Chinese government has tightened export controls on dual-use (civilian and military) goods to 40 Japanese institutions and companies, citing either involvement in Japan's military buildup or the inability to verify final users and end-uses.

Japanese Prime Minister Sanae Takaichi attended the National Assembly Budget Committee on the 4th, listening to members' inquiries. Photo by AFP News Agency

According to China's Ministry of Commerce, 20 Japanese institutions and companies have been added to the "export control" list, and 20 companies whose final users and end-uses could not be verified have been placed on the "watch list" as of June 29. The measures took effect immediately upon announcement.

The export control list includes defense research institutes, land, ship, and aviation equipment research institutes, Nikkotokki, Mitsubishi Electric's Defense & Space Technology division, and Mitsubishi Heavy Industries Logistics, among others. Exporting Chinese-made dual-use goods to these entities, as well as their transfer via third countries, is prohibited. Any ongoing transactions must be halted immediately. In special cases, exports may be allowed with permission from the Ministry of Commerce.

The watch list includes 20 companies such as Mitsui E&S, Mitsui & Co. Aerospace Maintenance Center, Fujitsu Network Solutions, and Komatsu NTC. Exports to these companies require individual permits instead of general licenses. Exporters must also submit a risk assessment report and a written pledge that the goods will not be used for military purposes. China stated that if there is a possibility the goods could be used to enhance military capabilities, export approval will not be granted.

The Chinese government claimed that these measures are intended to ensure national security, fulfill international non-proliferation obligations, and curb Japan's attempts at remilitarization and nuclear armament. However, the government added that normal China-Japan economic and trade activities would not be affected and that Japanese companies compliant with the law have no cause for concern.

China implemented similar sanctions in February, targeting 40 Japanese institutions and companies using the same approach. At that time, a social media account affiliated with China Central Television (CCTV), Weiyuantantian, explained immediately after the sanctions were announced that these actions were an "upgrade" of the dual-use goods export control measures against Japan, which had been introduced in January and were aimed at Japanese Prime Minister Sanae Takaichi.

China-Japan relations deteriorated rapidly following Prime Minister Takaichi's remarks in November of last year, stating that a Taiwan contingency could be considered a "situation threatening Japan's survival." The Wall Street Journal commented that these recent measures signal China's unwillingness to back down amid months of ongoing tensions between the two countries.

This content was produced with the assistance of AI translation services.