BEIJING: China on Tuesday took action against 40 Japanese companies and entities, citing national security concerns in the latest escalation of a months-long diplomatic row.
Beijing’s Ministry of Commerce of the People’s Republic of China said exports of dual-use items — goods that can have both civilian and military applications — would be restricted for 20 Japanese entities, including Mitsubishi and the Japan Aerospace Exploration Agency. An additional 20 firms, including Subaru, were placed on a “watch list” requiring stricter export reviews.
The ministry accused the companies of helping to enhance Japan’s military capabilities, adding that the measures were aimed at curbing Japan’s “remilitarisation” and nuclear ambitions.

Japanese authorities said they would “take appropriate measures” after analysing the impact of the curbs. The dispute follows remarks by Japanese Prime Minister Sanae Takaichi in November suggesting Tokyo could intervene militarily in any attack on Taiwan, triggering Beijing’s warnings to its citizens and a sharp drop in tourism to Japan.
China has also previously restricted imports of Japanese seafood and the export of dual-use goods, as well as scarce rare earths and powerful magnets. Despite the restrictions, Beijing said normal trade with Japan and “honest and law-abiding” companies would not be affected, and firms on the watch list could be removed if they complied with verification requirements.



