China's Commerce Ministry announced measures against 40 Japanese companies and entities on Tuesday, citing national security concerns over their military ties. It imposed export controls on 20 entities and added another 20 to a watch list for stricter reviews of dual-use items. The actions aim to curb Japan's remilitarization and nuclear ambitions.
China's Commerce Ministry took action against 40 Japanese companies and entities on Tuesday, February 24, 2026, citing national security concerns over their military ties. It imposed export controls on 20 entities, including Mitsubishi and the Japanese space agency, accusing them of helping to enhance Japan's military capabilities.
The ministry added a further 20 Japanese entities, including Subaru, to a "watch list" requiring stricter reviews of exports of "dual-use items." A Commerce Ministry statement said, "The above measures are aimed at curbing Japan's 'remilitarization' and nuclear ambitions and are completely legitimate, reasonable and lawful."
It added, "China's lawful listing actions target only a small number of Japanese entities, relevant measures target dual-use items and do not impact normal economic (exchanges) and trade between China and Japan," noting that "honest and law-abiding Japanese entities have nothing to worry about." Companies can apply to be removed from the "watch list" if they cooperate with Beijing's verification terms.
China has ramped up pressure on its neighbor since Prime Minister Sanae Takaichi suggested in November that Tokyo may react militarily to an attack on Taiwan, which Beijing has vowed to seize control of by force if necessary.
Last month, Beijing announced a broad ban on the export of "dual-use" goods with potential military applications. According to the Wall Street Journal, citing two exporters in China, China has since begun restricting exports to Japanese companies of scarce and expensive "heavy" rare earths, as well as the powerful magnets containing them.
