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China Imposes Export Controls on 40 Japanese Entities as Tensions with Tokyo Rise

The ministry said the move targets firms linked to Japan’s defense sector and imposes immediate licensing reviews on another 20 entities.

  • On Monday, China added 20 Japanese entities to an export blacklist and placed 20 others on a watch list requiring enhanced licensing scrutiny, escalating a months-long row between Beijing and Tokyo.
  • Beijing alleges Japan has "accelerated" its push toward "new-style militarism" since February, when China first restricted dual-use exports to firms supplying Japan's military, justifying the latest restrictions.
  • Blacklisted entities include the National Institute for Defense Studies and Mitsubishi Electric Defense and Space Technologies Corporation, while the watch list includes Mitsui, Terra Drone Corporation, and units of OKI Electric Industry.
  • The Ministry will implement "stricter end-user and end-use reviews on exports of dual-use items by entities on the watch list," while asserting the move "does not affect normal economic and trade exchanges between China and Japan."
  • Relations between Beijing and Tokyo deteriorated in November when Japanese Prime Minister Sanae Takaichi suggested Tokyo might respond militarily to an attack on Taiwan, which Beijing has vowed to seize by force.
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The 20 entities added to the blacklist of exports include several specialised subsidiaries and technology companies involved in the supply of components and engineering support for the Japanese defence sector

·Milan, Italy
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Caixin Global broke the news in Beijing, China on Sunday, June 28, 2026.
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