The measures announced on Monday add 20 entities to a restricted export list and place another 20 on a watch list, tightening Beijing’s scrutiny of Chinese-origin goods, software and technology that can be used for both civilian and military purposes. The curbs take effect immediately and require prior approval before controlled items can be supplied to the named entities.
The restricted list includes Japan’s National Institute for Defense Studies, six subsidiaries of Mitsubishi Heavy Industries, four units of Mitsubishi Electric and two subsidiaries of Kawasaki Heavy Industries. The watch list includes entities linked to Mitsui E&S, Fujitsu and Komatsu, among others, requiring exporters to provide risk assessments and written assurances that goods will not be used to strengthen Japan’s military capabilities.
Beijing framed the move as a response to what it described as Japan’s “remilitarisation” and nuclear ambitions, arguing that the controls were lawful and limited to a small group of organisations. It said normal trade between the two economies would not be affected, while warning that applications involving military users, military purposes or activities that could enhance Japan’s defence capability would not be approved.
Tokyo lodged a formal protest and demanded that the measures be withdrawn. Chief Cabinet Secretary Minoru Kihara described the curbs as “absolutely unacceptable and extremely regrettable” and said the government would assess the likely impact before considering further action. Defence-related companies named in the measures began reviewing the announcement, though immediate operational effects were not clear.
The dispute has sharpened since late last year, when Takaichi suggested that a Chinese attack on Taiwan could become a situation affecting Japan’s survival and potentially require a security response. Beijing treated the remarks as a direct challenge to its Taiwan position. China regards Taiwan as part of its territory and has not ruled out the use of force to bring the island under its control.
Japan has been expanding its defence posture, including long-range strike capabilities and missile deployments on remote islands. The Ground Self-Defense Force said on Monday that it had deployed a Type-12 missile launcher on Minamitorishima, the country’s easternmost island, a step viewed as part of Tokyo’s effort to strengthen deterrence across the western Pacific. Japan is also preparing revisions to security documents by December, raising expectations of further defence spending commitments.
The latest export action follows a similar round in February, when Beijing placed 20 entities on a restricted list and 20 others on a watch list. That earlier package targeted companies and organisations Beijing accused of supporting Japan’s military build-up. The new move indicates that China is willing to use its control over strategic industrial inputs as a pressure tool in disputes that combine security, trade and diplomacy.
Dual-use controls have become a central instrument in the wider competition over defence technology, semiconductors, advanced manufacturing and critical minerals. China dominates several supply chains for rare earths and other inputs used in magnets, motors, batteries, robotics, precision equipment and defence systems. Even where alternative suppliers exist, delays in licensing or verification can disrupt procurement schedules and raise costs for companies dependent on Chinese-origin materials or components.
For Japan, the immediate risk is not a broad trade breakdown but growing uncertainty for firms with defence, aerospace, shipbuilding, electronics and high-end machinery exposure. Mitsubishi Heavy Industries is Japan’s largest defence contractor and has roles in naval vessels, missiles and aerospace systems. Mitsubishi Electric supplies radar, missile and space-related systems, while Kawasaki Heavy Industries is involved in aircraft, submarines and other advanced platforms.
The watch-list mechanism adds a second layer of pressure because it does not impose an outright ban but makes transactions more burdensome. Exporters seeking licences must satisfy stricter end-user and end-use checks, a process that can deter suppliers even before formal denial. Compliance teams are likely to review contracts, supply routes and exposure to Chinese-origin controlled items.
The confrontation also comes as Japan deepens security cooperation with the United States and other partners. Tokyo has strengthened defence ties with the Philippines, Australia and European powers, while expanding discussions on maritime security in waters around Taiwan and the East China Sea. Beijing has criticised those moves as part of a broader containment strategy.
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