China has announced export restrictions on 40 Japanese companies and organisations, citing concerns that some of their work could strengthen Japan’s military capabilities. The announcement on Tuesday marks a significant escalation in the diplomatic strain between the two countries — one that has already affected travel and trade.
According to China’s Ministry of Commerce, exports of so‑called dual‑use items — products that can be used for both civilian and military purposes — will be restricted to 20 Japanese entities, including well‑known names like Mitsubishi and the Japan Aerospace Exploration Agency (JAXA). These restrictions will prevent Chinese suppliers from selling certain advanced components to them, and overseas companies will also be barred from sending China‑origin dual‑use items to those Japanese firms.
Another 20 companies — such as Subaru — were placed on a “watch list,” meaning that any export to them will now face higher scrutiny to make sure it doesn’t have potential military applications.
In its statement, China said the measures are legitimate, lawful and necessary to “curb alleged remilitarisation and nuclear ambitions” in Japan. The Japanese government has said it is reviewing the impact of the curbs and will take “appropriate measures” in response.
Escalating Diplomatic Strain
This move comes amid heightened tensions since Japanese Prime Minister Sanae Takaichi signalled that Tokyo was prepared to defend Taiwan if attacked — a position Beijing strongly criticises. Since last November, Beijing has also issued advisories discouraging Chinese citizens from travelling to Japan, triggering a steep drop in tourism between the countries.
Earlier reports also said China halted Japanese seafood imports — a sensitive economic issue that followed the recent resumption of trade after previous bans over concerns about wastewater from the Fukushima nuclear plant. In a separate symbolic gesture that also made headlines, Japan returned its last two giant pandas to China last month — ending a 50‑year history of the animals being on display in Japanese zoos.
China’s latest export controls also single out rare earth minerals and powerful magnets — crucial materials for advanced technology — tightening pressure even further on Japanese industry, according to industry sources cited by international media.
Despite the tough rhetoric, China’s commerce ministry stressed that normal trade and economic exchanges with Japan will continue, and companies on the watch list may be removed if they meet verification requirements.
