File photo: Japanese flag fluttering on the container wharf at Tokyo Port.
Toshifumi Kitamura | AFP | Getty Images
China on Monday blacklisted four of the Japanese government’s defense research institutes and imposed stricter export controls on dozens of other Japanese companies, escalating a months-long campaign to restrict the Japanese government’s access to Chinese-origin military supplies.
The Department of Commerce has added 20 organizations to the export control list, including the National Defense Research Institute and the Land, Sea, and Air Systems Research Center. under some units Mitsubishi Electric and Mitsubishi Heavy Industries were also targeted.
Domestic exporters as well as foreign organizations and individuals are prohibited from transferring dual-use items of Chinese origin to designated entities, the statement said, adding that ongoing activities must be stopped immediately.
Separately, China also added 20 more countries. Mitsui E&S Co., Ltd.drone manufacturer Terra Drone Co., Ltd.nuclear fuel processing equipment, and multiple units Oki Electric Industry It will be added to a watch list that requires increased licensing scrutiny. Both actions take effect immediately.
The ministry said it will apply stricter end-user and end-use screening to monitored companies and will not approve exports involving Japanese military users, military uses, or end-uses that could enhance Japan’s defense capabilities.
The move marks the latest escalation in a campaign launched in January, when the Chinese government banned dual-use exports to Japanese military users. In February, China added 20 entities, including a subsidiary of Mitsubishi Heavy Industries. IHI Co., Ltd. and Kawasaki Heavy Industriesadded to the export control list and 20 more companies including: Subaru Co., Ltd., TDK Corporation and added Fuji Aerospace Technology to my watchlist.
The Chinese government has increased pressure on the Japanese government after Japanese Prime Minister Sanae Takaichi said in November that a hypothetical Chinese attack on Taiwan could provoke a military response from the Japanese government, prompting criticism from the Chinese government.
A Commerce Department spokesperson said in a statement on Monday that Japan has shown no remorse since its listing in February and is instead “accelerating” its push toward what Beijing characterizes as a “new type of militarism,” including deploying offensive weapons and launching missiles overseas.
The Chinese government called on Japan to “turn back from its wrong path” but insisted that the measures would not affect normal bilateral economic and trade activities and that “law-abiding Japanese companies have no need to worry.”
Market reaction to this statement was mixed. Mitsubishi Electric fell about 1% and Mitsubishi Heavy Industries rose 4.9%.
