China has escalated tensions with Japan by adding 20 Japanese entities to its export restriction list, which limits their access to dual-use goods. Beijing stated that the move aims to protect national security and fulfill its international non-proliferation obligations.
China's Ministry of Commerce said in a statement that the blacklisted entities contribute to enhancing Japan's military capacity. It stressed that the restrictions are intended to safeguard national security and interests, and to comply with international commitments, particularly in the field of non-proliferation.
The decision comes at a time of rising tensions between Beijing and Tokyo. Last November, Japanese Prime Minister Sanae Takaichi suggested that Japan could intervene militarily if China, which considers Taiwan its territory, were to attack the island.
Since Takaichi took office, Japan, with U.S. support, has adopted a more proactive defense approach. Tokyo has increased military spending and strengthened security partnerships with regional allies like the Philippines to counterbalance China's growing military capacity.
In a separate statement, a spokesperson for China's Ministry of Commerce said China's decision was fully justified. While arguing that the restrictions would not affect normal economic and trade exchanges between the two countries, the spokesperson accused Tokyo of taking the wrong path recently.
The targeted entities include technology companies and specialized units that supply Japan's defense sector. Topping the list are the Mitsubishi Heavy Industries (MHI) group and the National Defense Research Institute, a research center under Japan's Ministry of Defense.
The move expands restrictions that Beijing has imposed on exports of dual-use items to Japan since early January. Japanese media earlier reported that China had also imposed restrictions on rare earth element shipments.
China has near-complete dominance in the production and export of rare earth elements used in the manufacture of advanced technologies such as missile guidance systems and laser devices. Japan meets about 70 percent of its demand for these minerals from China.
On the same day, Beijing added another 20 Japanese entities to a monitoring list. This list requires Chinese exporters to conduct stricter risk assessments and obtain guarantees before shipping dual-use items to those buyers.
The Japanese government reacted strongly to China's sanctions. Japan's Chief Cabinet Secretary Minoru Kihara said his government has lodged a strong protest and demanded the cancellation of these measures. Kihara added that they will carefully examine the consequences of these steps and take necessary action.
China's latest move signals that tensions between East Asia's two largest economies will persist, with trade, technology, and regional security issues intertwined, especially regarding Taiwan and advanced industrial supply chains.