China Moves Against 40 Japanese Entities Over Alleged Military Links

China’s Commerce Ministry on Tuesday moved against 40 Japanese companies and organisations, citing national security concerns linked to alleged military ties.

Export controls were imposed on 20 entities, including Mitsubishi Corporation and the Japan Aerospace Exploration Agency, with Beijing accusing them of contributing to Japan’s military capabilities.

Another 20 Japanese entities, among them Subaru, were placed on a “watch list” that subjects exports of so-called dual-use items — goods that can serve both civilian and military purposes — to tighter scrutiny.

In a statement, the ministry said the measures were intended to curb what it described as Japan’s “remilitarisation” and nuclear ambitions, calling the steps “legitimate, reasonable and lawful.” It added that the restrictions target only a limited number of entities and would not disrupt normal economic and trade relations between China and Japan. “Honest and law-abiding Japanese entities have nothing to worry about,” the statement said.

Firms placed on the watch list may apply for removal if they comply with Beijing’s verification requirements.

Tensions have intensified since Japanese Prime Minister Sanae Takaichi suggested in November that Tokyo could respond militarily to any attack on Taiwan, a self-governed island that China has vowed to bring under its control, by force if necessary.

Last month, Beijing announced a sweeping ban on exports of certain dual-use goods with potential military applications. It has also begun restricting shipments to Japanese companies of scarce “heavy” rare earth elements and the powerful magnets made from them, according to a report by The Wall Street Journal, which cited Chinese exporters.