Beijing, February 24 – In a significant escalation of trade tensions, China’s Ministry of Commerce announced on Tuesday the addition of 20 Japanese entities to its Export Control List and another 20 to the Watch List. This move targets companies accused of bolstering Japan’s military capabilities.
The ministry’s spokesperson detailed that the decision aligns with China’s Export Control Law and regulations on dual-use items. Firms like Mitsubishi Shipbuilding Company Limited are among those blacklisted for their alleged role in enhancing Japan’s defense posture. Exporters are now prohibited from supplying dual-use goods to these entities, while foreign organizations and individuals are barred from transferring such items produced in China.
All ongoing activities involving these companies must cease immediately. Separately, 20 other Japanese firms, including Subaru Corporation, have been placed on the Watch List due to unverifiable end-users and end-uses of dual-use products. Cooperation with investigations could lead to their removal.
The spokesperson emphasized that these measures aim to counter Japan’s ‘remilitarization’ and nuclear ambitions, describing them as ‘just, reasonable, and lawful.’ Normal trade between China and Japan remains unaffected, with compliant Japanese businesses having no cause for concern.
This development comes amid heightened geopolitical strains in East Asia, where export controls are increasingly weaponized in diplomatic disputes. Analysts suggest it could disrupt supply chains in sectors like shipbuilding and aerospace, prompting Japanese firms to seek alternative sourcing.
As bilateral relations navigate these choppy waters, the international business community watches closely for potential ripple effects on global trade dynamics.