China has added 20 Japanese entities to its export control list and another 20 firms and institutions to a watch list for goods with potential military applications. The move increases economic pressure on Tokyo amid the countries' prolonged diplomatic row, affecting some of Japan's largest companies.
China's Ministry of Commerce has added 20 Japanese entities to its export control list. These include subsidiaries of Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and IHI Corporation, as well as the National Defense Academy of Japan. The entities are involved in the research, development, and production of military equipment, ranging from ships and aircraft to radar and missiles.
At the same time, another 20 entities have been placed on a watch list, subjecting them to stricter scrutiny in the trade of dual-use items. This includes carmaker Subaru—whose aerospace division is contracted for defence production—as well as Sumitomo Heavy Industries and the Institute of Science Tokyo, a public research university.
Exports to these entities that are determined to “contribute to enhancing Japan’s military capabilities” will not be approved, the commerce ministry said. Dual-use items are often primarily designed with civilian functionality in mind but can significantly contribute to the development or production of weapons and military systems.
The action widens the scope of the countries’ prolonged diplomatic row to include some of Japan’s largest companies, increasing economic pressure on Tokyo.
