China Places 40 Japanese Firms Under Export Controls Over Remilitarisation Concerns
China announced on Monday (June 29, 2026) new export controls on 40 Japanese entities, accusing them of contributing to Japan's “remilitarisation” amid rising bilateral tensions.
The Chinese Commerce Ministry stated that 20 Japanese entities, including several divisions of Mitsubishi Corporation, have been added to a control list. This prohibits Chinese and foreign exporters from selling them dual-use items — goods that can be used for both civilian and military purposes — that are made in China.
Another 20 entities, including Mitsui E&S (a ship engine manufacturer) and divisions of Fujitsu and Komatsu, have been placed on a watch list for dual-use items. Chinese companies exporting to these firms must apply for special licences, submit risk assessment reports on the Japanese companies, and provide written assurances that the dual-use items will not be used for military purposes.
“China's measures are entirely justified, reasonable and lawful. They are aimed at firmly deterring Japan's reckless pursuit of new militarism,” the Commerce Ministry said. “We hope Japan will recognise its mistakes, reverse its wrongful course, genuinely reflect on its past and return to the right track.”
Relations between Beijing and Tokyo have deteriorated since Japanese Prime Minister Sanae Takaichi last year indicated that Japan could intervene if China used military force against Taiwan, a self-governing island that China claims as its own territory. The Takaichi government has also pursued greater offensive capabilities, including deploying longer-range missiles on remote islands and promoting lethal weapons exports under a new policy. Japan is expected to revise its defence and security documents by December, potentially increasing its defence budget.
On Monday, Japan's Ground Self-Defence Force announced the deployment of a Type-12 missile launcher on Minamitorishima, Japan's southernmost remote island, in what analysts view as a response to China's expanding activity in the Pacific.
In February, China had already placed 20 Japanese companies on an export control list and 20 others on a watch list. The Commerce Ministry said that since then, “instead of reflecting on its past and correcting its course, Japan has continued down the wrong path” by accelerating remilitarisation, deploying offensive weapons, and launching missiles.
China considers Taiwan its own territory and has increased military pressure on the island. Earlier this month, the Chinese Coast Guard conducted patrols east of Taiwan, with state media describing it as a “pointed warning” to Japan and the Philippines after those countries announced plans to discuss maritime boundaries in waters Beijing views as its own.
The United Kingdom, Germany, and France, in a rare joint statement last week, condemned Chinese activities in waters east of Taiwan and opposed any change to the status quo between China and Taiwan.
