China adds 20 Japanese entities to export control watch list to curb 're-militarization'

China has placed 20 Japanese entities involved in enhancing Japan's military capabilities on an export control watch list, a step aimed at curbing Tokyo's "re-militarization" and any potential ambitions of creating nuclear weapons, the Ministry of Commerce announced Tuesday.

The designated entities include major industrial players such as Subaru Corporation, Sumitomo Heavy Industries, and TDK Corporation, as well as research institutions and trading companies.

Exporters are prohibited from shipping dual-use items — goods and technologies with both civilian and military applications — to any of the 20 entities, a spokesperson with the ministry said.

Foreign organizations and individuals are prohibited from transferring or otherwise providing dual-use items originating from China to the listed entities, the spokesperson said, noting that ongoing activities involving such transfers or provisions must cease immediately.

For Japanese entities not on the list, restrictions nonetheless apply if transactions involve Japanese military end users, military applications, or any other end uses that could contribute to enhancing Japan's military capabilities, the spokesperson added.

"The purpose of these measures is to stop Japan's 're-militarization' and nuclear-weapon ambitions," the spokesperson said. "They are completely legitimate, reasonable, and lawful."

"China's listing actions in accordance with the law target only a small number of Japanese entities. The relevant measures apply only to dual-use items," the spokesperson said. "These measures do not affect normal economic and trade exchanges between China and Japan. Japanese entities that act in good faith and comply with the law have nothing to worry about."