China Imposes Export Curbs on 40 Japanese Entities, Research Institutes Over Military Ties

China’s Commerce Ministry on June 29 added 40 more Japanese entities and research institutes to its export control list, barring exports of dual-use items to the companies over concerns they could be used to “enhance Japan’s military strength.”

The ministry announced the export curbs in two separate statements. The first listed 20 Japanese defense companies and research institutes, including the National Institute for Defense Studies and several units of Mitsubishi Corporation, which it said were “involved in enhancing Japan’s military capabilities.”

It stated that individuals and foreign organizations are barred from exporting or supplying dual-use items originating from China to those companies and said that “any ongoing related activities must be immediately ceased.”

The ministry said the measure was intended to “safeguard national security and interests and fulfill international obligations,” including those related to non-proliferation.

In a subsequent statement, China imposed export curbs on 20 more Japanese companies “whose end-users and end uses of dual-use items cannot be verified,” the ministry stated.

Among the targeted companies are aerospace and defense company Mitsui Bussan Aerospace Co., drone company Terra Drone Corporation, and electrical equipment manufacturer Hitachi Advanced Systems Corporation.

The ministry said that domestic companies exporting to the listed entities must submit a risk assessment report and provide a written commitment that any dual-use items provided to those entities will not be used to enhance Japan’s military strength.

Exports of dual items to the listed entities will be subject to stricter reviews, and any exports involving Japanese military users and military purposes will be denied, according to the statement.

The ministry also said the entities could apply for removal from the export control list, provided they cooperate with Chinese authorities to verify their end users and end uses of dual-use items.

The measures came amid strained relations between Tokyo and Beijing following Japanese Prime Minister Sanae Takaichi’s remarks in November 2025 that a Chinese attack on Taiwan could constitute a threat to Japan that would prompt a military response.

Beijing considers Taiwan its own territory, and the Chinese communist regime has not ruled out taking control of the self-governing democratic island by force.

The Chinese Communist Party (CCP) had demanded that Takaichi retract her remarks, but she refused. In response, Beijing launched a series of retaliatory campaigns against Japan, including a travel boycott.

In February, the Chinese Ministry of Commerce placed 20 Japanese companies and institutions on its “list of concerns,” restricting exports of dual-use goods and technologies to the listed companies.

Japanese officials decried Beijing’s actions and said at the time that the government would take action.

Japan also opened anti-dumping investigations earlier this month into imports of hot- and cold-rolled steel coils, sheets, and strips from China, South Korea, and Taiwan.

Japan’s trade authorities said the probes will determine whether the imports were sold at dumped prices and whether they caused material injury to Japanese producers.

James Xu contributed to this report.