BANGKOK — China has restricted exports to 40 Japanese entities, citing concerns over what it calls Japan’s “remilitarization,” in a significant escalation of tensions between the two East Asian powers. The move, announced Tuesday, comes after Japanese Prime Minister Sanae Takaichi suggested in November that Japan could intervene militarily if China were to attack Taiwan, a self-governed island that Beijing claims as its own.
The Chinese Commerce Ministry’s actions divide the targeted companies into two categories: 20 placed on an export control list and another 20 added to a separate watchlist. Companies on the export control list will be barred from receiving dual-leverage goods from China – items with both civilian and military applications. These include subsidiaries of Mitsubishi Heavy Industries involved in shipbuilding, aircraft engine production and maritime machinery, as well as portions of Kawasaki Heavy Industries and Fujitsu, according to the ministry.
The restrictions extend beyond direct exports, prohibiting foreign organizations and individuals from supplying Chinese-origin dual-use items to the listed Japanese entities. “All ongoing related activities must cease immediately,” the ministry stated. The 20 companies on the watchlist face stricter scrutiny, requiring individual export license applications, risk assessments, and written assurances that the imported goods will not be used by the Japanese military. Among those on the watchlist are Subaru Corporation, Mitsubishi Materials Corporation, and the Institute of Science Tokyo.
Beijing framed the measures as legitimate and necessary, asserting they aim to curb Japan’s military ambitions and nuclear capabilities. The Commerce Ministry insisted the restrictions are narrowly targeted and “will not affect normal economic and trade exchanges between China and Japan,” adding that law-abiding Japanese companies have “absolutely nothing to worry about.”
Japan Protests Restrictions as “Unacceptable”
Tokyo swiftly condemned the Chinese actions, lodging a formal protest through its Deputy Chief of Mission to Japan, Shi Yong. Masaaki Kanai, head of the Japanese Foreign Ministry’s Asian and Oceanian Affairs Bureau, described the restrictions as “absolutely unacceptable” and diverging from international norms. “The measures announced today will never be tolerated. Here’s deplorable indeed. We strongly protest to China and urge them to lift them,” said Kei Sato, Japan’s deputy chief Cabinet secretary, during a Tuesday briefing.
Sato indicated that the full implications of the restrictions are still being assessed, including whether they extend to trade in rare earth minerals, a critical component in many high-tech industries. “We will capture actions accordingly,” he added. The timing of these restrictions follows a landslide victory for Takaichi’s party in recent parliamentary elections, bolstering her ability to pursue a more assertive security policy.
Limited Impact Reported by Some Affected Companies
Initial reactions from some of the affected companies suggest a limited immediate impact. Representatives from industrial equipment supplier Yashima Denki Co. And chemical manufacturer NOF Corp, both on the watchlist, told the Associated Press they believe their limited trade with China will minimize disruption. Most other companies contacted by the AP declined to comment.
The escalating tensions stem from a broader pattern of Chinese criticism directed at Japan, particularly regarding Prime Minister Takaichi’s comments on Taiwan and what Beijing perceives as Japan’s growing military ambitions. China views Taiwan as a renegade province that must eventually be reunified with the mainland, by force if necessary, and consistently objects to any foreign government expressing support for Taiwan’s sovereignty. Beijing has repeatedly criticized Tokyo over its stance on Taiwan.
The current diplomatic crisis also coincides with a period of heightened geopolitical competition in the Indo-Pacific region, with the United States playing a key role in bolstering Taiwan’s defenses and strengthening alliances with countries like Japan. The ongoing dispute between China and Japan has prompted concerns about regional stability, as highlighted by a recent report from NPR, which noted that neither side appears willing to back down.
The restrictions on exports to Japanese entities represent a significant hardening of China’s position and signal a willingness to use economic leverage to pressure Japan. The situation is further complicated by the broader context of the 2025–2026 China–Japan diplomatic crisis, which has seen a deterioration in relations across multiple fronts, including cultural exchanges, and tourism.
Looking ahead, the immediate focus will be on how Japan responds to the export restrictions. Tokyo has indicated it will examine the details of the measures and consider appropriate action, but the specific nature of that response remains unclear. Further developments are expected in the coming weeks as both countries assess the impact of the restrictions and explore potential avenues for de-escalation. The next official communication between the two governments is anticipated to occur through diplomatic channels, with a potential meeting between foreign ministry officials scheduled for early March.
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