China adds Japanese entities to export control list, turning up heat on Tokyo
Beijing has also added 20 Japanese firms and institutions to a watch list for the export of goods with potential military applications
China has added 20 Japanese entities to its export control list and 20 more to a watch list scrutinising the trade of select goods, increasing economic pressure on Tokyo in a move that widens the scope of the countries’ prolonged diplomatic row to include some of Japan’s largest companies.
The 20 entities, which include subsidiaries of Mitsubishi Heavy Industries, Kawasaki Heavy Industries and IHI, as well as the National Defense Academy of Japan, are deeply involved in the research, development and production of a wide range of military equipment – from ships and aircraft to radar and missiles.
At the same time, another 20 entities, including carmaker Subaru – whose aerospace division is contracted for defence production – were added to a watch list subjecting them to stricter scrutiny in the trade of dual-use items. Sumitomo Heavy Industries and the Institute of Science Tokyo, a public research university, were also placed on the watch list.
Exports to these entities that are determined to “contribute to enhancing Japan’s military capabilities” would not be approved, the commerce ministry said.
While dual-use items are often primarily designed with civilian functionality in mind, they can significantly contribute to the development or production of weapons and military systems.
Common examples include drones and rare earth elements – essential raw materials for numerous goods in the tech and defence sectors – as well as high-performance semiconductors.
In its statement on the latest measures, China’s commerce ministry said its “completely just, reasonable and lawful” actions were intended to stop Japan’s “remilitarization” and thwart Tokyo’s attempts to build nuclear weapons.