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China blacklisted 20 Japanese firms amid diplomatic tension with Tokyo

By The South Asia Times

BEIJING - China's Ministry of Commerce has placed 20 Japanese entities on its export control list, citing national security concerns and accusing Tokyo of pursuing “remilitarization” and nuclearization.

The move, which took effect on February 24, prohibits Chinese exporters from supplying dual-use items -- goods and technologies with both civilian and military applications -- to the designated companies.

Foreign organizations and individuals are also barred from transferring or providing China-origin dual-use items to the listed entities. Authorities said any ongoing related export activities must cease immediately.

Among the companies named is Mitsubishi Heavy Industries Shipbuilding Co., Ltd., one of Japan’s leading defense and shipbuilding contractors.

A ministry spokesperson said the measures are aimed at curbing what Beijing described as Japan’s attempts at “remilitarization” and nuclearization, calling the steps “fully justified, reasonable and lawful.” The spokesperson stressed that the restrictions apply only to a limited number of entities and are confined to dual-use items.

“These actions do not affect normal China-Japan economic and trade exchanges,” the ministry said, adding that Japanese companies operating in good faith and in compliance with the law “have no cause for concern.”

The spokesperson also noted that entities placed on the watch list may apply for removal after fulfilling their obligations and cooperating with verification procedures in accordance with relevant regulations. The ministry said it would review such applications and could remove companies from the list following verification.

The announcement comes against the backdrop of rising regional security tensions and Japan’s recent moves to increase defense spending and expand military cooperation with allies — steps that have drawn sharp criticism from Beijing.