The Chinese side has claimed that these steps are ”completely legitimate, reasonable and legal” measures, expressing concern over Japan's remilitarization and possible nuclear ambitions.
What you should know
China on Tuesday announced stricter export monitoring and control measures against 40 Japanese companies amid heightened diplomatic tensions over the Taiwan issue. Beijing has placed 20 companies directly on an export control list, banning Chinese exporters from trading dual-use goods with them, and has added 20 more to a strict watch list. China's Ministry of Commerce said that "dual-use" goods, which can be used for both civilian and military purposes, will no longer be sold to the 20 companies. The ministry issued a statement saying that "all ongoing related activities must be immediately stopped." It also banned foreign organizations or individuals from providing such goods manufactured in China to the listed companies.
The companies on the sanctions list include subsidiaries of Mitsubishi Heavy Industries, which are involved in shipbuilding, aircraft engines and marine machinery, as well as some divisions of Kawasaki Heavy Industries and Fujitsu.
Chinese exporters wishing to do business with companies on the watch list must apply for an individual license and submit a written commitment not to use the materials by the Japanese military, along with a risk assessment report. The list includes Subaru Corporation, Mitsubishi Materials Corporation and the Institute of Science Tokyo.
The Chinese side has called the measures “absolutely legitimate, reasonable and legal”, expressing concern over Japan’s remilitarization and possible nuclear ambitions. The ministry has clarified that the decisions only target a limited number of companies and will not affect normal economic and trade exchanges. “There is no reason for honest and law-abiding Japanese institutions to worry,” the statement said.
The decision is seen as a continuation of the growing bilateral sensitivity that has been building since Japanese Prime Minister Sane Takaichi expressed concerns about Taiwan’s potential security situation last November. Beijing has long described Taiwan as its own territorial issue and has made its position clear on the matter. China has generally been cautious and sensitive to external statements about Taiwan’s status.
Meanwhile, Takaichi’s party won a landslide victory in parliamentary elections earlier this month, which is expected to strengthen Japan’s more conservative stance on security, immigration and strategic policy. The latest Chinese move has also been seen as a sign that it could affect regional balances of power and supply chains.
