China restricts exports to 40 Japanese entities amid rising tensions

China has imposed new export controls on 40 Japanese entities, citing concerns over Japan's military buildup and remarks regarding Taiwan, further straining bilateral relations. The Chinese Ministry of Commerce announced that 20 entities, including Mitsui E&S, have been added to a watch list for dual-use items, requiring special licenses for exports. Additionally, 20 other Japanese entities, including divisions of Mitsubishi Corporation, have been placed on a control list, banning both Chinese and foreign exporters from selling them dual-use items made in China.

Beijing stated the measures are "entirely justified, reasonable and lawful" and aimed at deterring Japan's pursuit of "new militarism." The decision follows remarks by Japanese Prime Minister Sanae Takaichi implying potential intervention if China used force against Taiwan, and Japan's reinforcement of its defense capabilities, including deploying longer-range missiles. In February, China had previously placed 20 Japanese companies on an export control list and 20 others on a watch list.