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China Hits More Japanese Companies with Export Control Sanctions
China imposed export control measures against 20 Japanese entities and added 20 more companies to its surveillance list, according to separate releases from the Commerce Ministry on Monday.The control list bans Chinese exports of dual-use or civilian/military items to the 20 companies, including Japanese state-run National Institute for Defense Studies, Ground Systems Research Center, Naval Systems Research Center, and Air Systems Research Center in its control list. Affiliates of Mitsubishi Electric (TYO:6503) and Mitsubishi Heavy Industries (TYO:7011) were also added.Meanwhile, China's surveillance list, which will allow for stricter scrutiny of exports to the Japanese entities, included Mitsui E&S (TYO:7003), Hitachi (TYO:6501) subsidiary Hitachi Advanced Systems, Komatsu (TYO:6301) subsidiaries, OKI Electric Industry (TYO:6703) and Hosoya Pyro-Engineering.Both took effect on Monday."China's move is entirely legitimate, reasonable, and legal, and aims to resolutely curb Japan's reckless actions of 'new-type militarism.' We hope Japan will realize its mistake, change its erroneous behavior, and truly reflect on and return to the right track. China's legally mandated list targets only a small number of Japanese entities, and the measures only apply to dual-use items. They will not affect normal Sino-Japanese economic and trade exchanges," a spokesperson for the Ministry of Commerce said.At a press conference, Japanese Chief Cabinet Secretary Minoru Kihara said Monday the country will not accept the measures and has lodged its objection and request for their removal.The diplomatic row between China and Japan can be traced back to November 2025 when Japanese Prime Minister Sanae Takaichi suggested military deployment if China attempts to seize Taiwan. The latest escalation follows Beijing's export control announcements in February 2026, which targeted 40 firms.
Nikkei 225Shanghai Composite^SZSETYO:6301TYO:6501TYO:6503TYO:7003TYO:7011
