China has announced new export controls targeting 40 Japanese entities, escalating tensions between Beijing and Tokyo. The restrictions, effective immediately, include bans and licensing requirements on the sale of dual-use items—goods with both civilian and military applications. The move comes as China accuses Japan of pursuing “remilitarization” through expanded defense policies and weapons exports.
Among the affected companies are divisions of Mitsubishi Corporation, Mitsubishi Electric, Mitsui E&S, Fujitsu, Komatsu, and drone manufacturer Terra Drone. Twenty entities have been placed on a strict control list, prohibiting them from receiving sensitive exports, while another twenty are on a watch list requiring special licenses and risk assessments before transactions can proceed.
Beijing stated that the measures are intended to safeguard national security and deter Japan’s military buildup, citing deployments of longer-range missiles and defense expansion in the Pacific. The restrictions also cover industries such as shipbuilding, electronics, and nuclear energy, potentially disrupting trade and supply chains.
Japan’s government has called the curbs “unacceptable and extremely regrettable,” with Chief Cabinet Secretary Minoru Kihara confirming that Tokyo will assess the impact and consider countermeasures. Analysts note that the move could further strain relations between the two nations, especially as Japan revises its defense and security documents by December 2026.
The export controls highlight growing geopolitical friction in the region, with dual-use technologies now at the center of disputes between Asia’s two largest economies.
