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China has expanded the list of Japanese companies and organisations on its export control list in Beijing’s latest move to curb what it describes as a “new type of militarism” from the government of Prime Minister Sanae Takaichi.
Monday’s move, which restricts Chinese exports of “dual use” items that may serve both civilian and military purposes, is the latest escalation of a row that has plunged Japan-China relations into their worst state in more than a decade.
Beijing is furious with Takaichi for her suggestion last year that Japan could become militarily embroiled in regional conflict if China were to invade Taiwan. China has repeatedly accused her administration of “aggressive remilitarisation” and of acting in breach of Japan’s pacifist constitution.
Takaichi, who describes Japan as facing its most severe security environment since the second world war, has refused to retract her comments.
The companies added to the export control list include subsidiaries of Mitsubishi Electric and Mitsubishi Heavy Industries. The restrictions will also apply to several Japanese government research organisations including the National Institute for Defense Studies.
Chinese exporters are banned from selling to the entities on the restricted list, and foreign organisations or individuals are also prohibited from selling dual-use items that were built or originated in China.
China last expanded the list to 40 companies in February.
In parallel with the expanded export control list, China’s commerce ministry on Monday put 20 Japanese companies and organisations on its watchlist, meaning they will get closer scrutiny in any matters relating to potential dual-use technologies. The list includes subsidiaries of Fujitsu, Mitsui E&S, Hitachi, Komatsu and Terra Drone.
Beijing’s targeting of Japanese companies is the latest example of China’s weaponisation of trade in recent years. The EU Chamber of Commerce in China in April has found that Beijing has nearly tripled its use of export controls in the past five years. While some instances have been in response to western measures, the researchers noted that Beijing’s controls have also frequently targeted trade chokepoints.
In a statement, China’s commerce ministry said: “Japan has not repented, but instead gone further down the wrong path, accelerating its new type of militarism, speeding up remilitarisation, deploying offensive weapons and launching offensive missiles overseas.”
Last week, China’s Ministry of Foreign Affairs also noted Japan’s decision to lift its self-imposed ban on the export of lethal weapons and its efforts to build a “combat-capable” military system in what Beijing said amounted to a threat to regional stability.
On Monday, Japan’s most senior government spokesperson accused China Coast Guard vessels of intermittently sailing inside Japan’s exclusive economic zone in an area east of Taiwan and said the ships had made “unilateral claims regarding those waters”.
Minoru Kihara, Japan’s chief cabinet secretary, said: “Such activities by China are unacceptable to Japan, and we have repeatedly lodged protests through diplomatic channels.”
China’s commerce ministry and Japan’s defence ministry did not immediately respond to requests for comment.
Additional contributions from Nian Liu in Shanghai
