China imposes export controls on dozens of Japanese entities amid worsening feud with Tokyo

China has imposed new export controls on dozens of Japanese organisations, tightening restrictions on the transfer of dual-use items that can have military applications. The move adds to a months-long deterioration in relations between Beijing and Tokyo and comes as both sides continue to trade accusations over security and regional policy. The measures were announced by China's Ministry of Commerce on Monday.

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Under the decision, 20 organisations were placed on a blacklist that bars them from receiving dual-use items. Another 20 organisations were added to a watch list, meaning exporters must submit a risk assessment and a written assurance that shipments will not contribute to Japan's military capabilities. The ministry said the action was based on national security and non-proliferation concerns.

The blacklisted organisations include the state-affiliated National Institute for Defense Studies, Naval Systems Research Center and Ground Systems Research Center, as well as firms Mitsubishi Precision, MHI Logitech and Kawajyu Gifu Manufacturing. The watch list includes Mitsui E&S, Terra Drone and Hitachi Advanced Systems. A ministry spokesperson said the measures were "entirely legitimate, reasonable, and lawful" and would not affect normal China-Japan economic and trade exchanges.

Japan's chief cabinet secretary, Minoru Kihara, urged Beijing to revoke the measures and called them unacceptable. The latest restrictions follow a similar move in February, when China added 20 Japanese entities to its blacklist and 20 others to its monitoring list amid an escalating dispute over Taiwan. That earlier step showed how quickly the trade and security relationship between the two countries has become entangled with wider regional tensions.

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The dispute has deepened after comments by Japanese Prime Minister Sanae Takaichi late last year, when she suggested Tokyo could intervene militarily if China tried to take control of Taiwan. Beijing reacted sharply, saying Japan was moving towards what it described as "new militarism" and "remilitarisation". China regards Taiwan as part of its territory and has repeatedly said it wants eventual reunification, while Japan has become more vocal about the security implications of any conflict around the island.

The new controls matter because they affect both defence-linked institutions and private companies involved in advanced systems and industrial technology. Dual-use restrictions can complicate supply chains, raise compliance costs and slow cross-border business even when trade is not directly military in nature. What remains unclear is how widely the measures will be enforced in practice and whether Japan will respond with its own countermeasures or further diplomatic pressure.

The next point to watch is whether the dispute over Taiwan continues to spill into trade policy and export controls.

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