China Expands Export Controls on Japanese Entities

China’s Commerce Ministry announced the addition of 20 Japanese entities, including Mitsui E & S, which manufactures engines and other ship equipment, to a watch list for dual-use items that can serve both civilian and military purposes. According to the ministry, Chinese companies exporting to these firms must apply for special licences, submit risk assessment reports on the Japanese companies and provide written pledges that the dual-use items will not be used for military purposes. Additionally, 20 other Japanese entities that were placed on a watch list in February have been moved to a control list, meaning both Chinese and foreign exporters are banned from selling them dual-use items made in China, the Commerce Ministry said.

Relations between Beijing and Tokyo have become increasingly tense since Japanese Prime Minister Sanae Takaichi last year implied Japan could intervene if China used military force against Taiwan, a self-ruled island democracy that China claims as its own. Takaichi’s government is further reinforcing Japan with more offensive capabilities, including deploying longer-range missiles on remote islands and promoting lethal weapons exports under a new policy. Japan is also set to revise its defence and security documents by December, which could further increase its defence budget. In February, China put 20 Japanese companies on an export control list and 20 others on a watch list. China considers self-ruled Taiwan its own territory, to be retaken by force if necessary, and has increased military pressure on the island.

On Monday, Japan’s Ground Self-Defence Force announced it had deployed a Type-12 missile launcher on the country’s southernmost remote island of Minamitorishima, an apparent response to China’s growing activity expanding into the Pacific.