BEIJING / TOKYO, June 30 — China announced Monday that it has imposed new export controls on 40 additional Japanese entities, bringing the total number of Japanese companies and institutions subject to Beijing’s restrictions to 80, according to a statement from the Ministry of Commerce. The measures, effective immediately, mark a notable escalation in trade tensions between the two major Asian economies.
The Ministry of Commerce issued two notices on June 29: one placing 20 entities on a “Control List” — the most restrictive category — and a second placing another 20 on a “Watch List.” The Control List targets institutions including Japan’s National Institute for Defense Studies, the Land, Naval and Air Self-Defense Force research institutes, and subsidiaries of major defense-related conglomerates such as Mitsubishi Electric and Mitsubishi Heavy Industries, according to the official notices. The Watch List covers civilian companies with potential defense applications, including Mitsui E&S, Mitsubishi Nuclear Fuel, Japan Nuclear Fuel, Terra UAV, ACSL, Fujitsu Network Solutions, Hitachi Advanced Systems, Komatsu and Oki Electric Industry.
Entities on the Control List face a full prohibition on receiving any dual-use goods originating from China and are barred from transferring Chinese-origin items to third parties overseas. Entities under the Watch List are required to apply for individual export licenses, submit risk assessment reports, and provide written guarantees that acquired goods will not be diverted for military use.
Monday’s expansion follows China’s first round of export controls on 40 Japanese entities implemented on February 24, 2026. The cumulative effect means nearly half of key entities within Japan’s defense industrial base are now under some form of Chinese export oversight.
Chinese officials defended the measures in firm official language. The Commerce Ministry statement said Japan had chosen “to accelerate down the wrong path, intensifying its push toward neo-militarism.” Foreign Ministry spokesperson Guo Jiakun stated at a regular press briefing that Beijing’s action is “entirely justified, reasonable, and lawful, aimed at resolutely curbing Japan’s neo-militarist ambitions.” Guo added that the restrictions target only a narrow set of Japanese entities and apply solely to dual-use items, and will not disrupt normal bilateral economic and trade exchanges.
Japan’s Chief Cabinet Secretary Minoru Kihara condemned the announcement during a Tokyo press briefing. “This is absolutely unacceptable and deeply regrettable,” Kihara said, confirming Japan has lodged a formal diplomatic protest with Beijing and demanded the immediate withdrawal of the new restrictions.
The development comes amid a sustained deterioration in Sino-Japanese relations. On the same day China unveiled the expanded export controls, Japan confirmed it had begun deploying Type 12 surface-to-ship missile launch units on Minami-Tori-shima, a remote Pacific atoll — a move that has drawn repeated concerns from Beijing in recent weeks.
China’s regulatory action is legally grounded in its Export Control Law and the Regulations on the Export Control of Dual-Use Goods. Analysts pointed out that the precise, targeted designations focusing on Self-Defense Forces-affiliated institutions reflect a more assertive regulatory stance compared with previous trade frictions.
Japanese industry groups have expressed growing concern over the new curbs. Defense and advanced manufacturing representatives warned the restrictions could disrupt civilian and dual-use component supply chains across multiple sectors. The full commercial impact remains unclear, as the official notices do not specify detailed categories of restricted goods.
Bilateral ties have long been strained by overlapping disputes, including territorial tensions over the Diaoyu/Senkaku Islands, historical differences, and broader security competition in the East China Sea. Diplomatic observers in Beijing expect the newly expanded export controls to become a key topic in upcoming bilateral engagements.
The Ministry of Commerce notices were initially released in Chinese via the official government website, with official translations published for international audiences. No further supplementary comments from Chinese authorities were available as of late Monday.
