Chinese President Xi Jinping (left) and Japanese Prime Minister Sanae Takaichi [Xinhua·EPA=Yonhap News file photo]

The Chinese government has tightened export controls on dual-use (civilian-military) goods for 40 Japanese institutions and companies, citing their involvement in Japan's military buildup or the inability to verify their end-users and end-uses.

In a public notice on the 29th, China's Ministry of Commerce announced that 20 Japanese institutions and companies involved in Japan's military buildup have been placed on an export control list, while another 20 companies, for which end-users and end-uses could not be verified, have been added to a watch list.

The export control list includes the National Institute for Defense Studies, the Ground Systems Research Center, the Naval Systems Research Center, and the Air Systems Research Center, as well as Nikko Toki, Nikko YPK Trading, Mitsubishi Electric Defense & Space Systems, and Mitsubishi Heavy Industries Logitec.

Consequently, Chinese exporters are prohibited from exporting dual-use goods to these entities, and overseas organizations or individuals are also restricted from transferring or providing Chinese-made dual-use goods to them.

Any ongoing relevant transactions must be terminated immediately.

If export is necessary for special reasons, permission must be obtained from the Ministry of Commerce.

The watch list includes 20 companies such as Mitsui E&S, Mitsui & Co. Aerospace, Fujitsu Network Solutions, and Komatsu NTC.

When exporting dual-use goods to these companies, exporters cannot obtain export certificates through general license applications or registration declarations.

To apply for an individual license, they must submit a risk assessment report along with a written commitment confirming that the items will not be used in ways that contribute to Japan's military buildup.

The Ministry of Commerce stated that it would more strictly scrutinize the end-users and end-uses for companies on the watch list and will not approve exports if they are determined to be for Japanese military purposes or to contribute to a military buildup.

These measures took effect immediately upon announcement.

The Ministry of Commerce claimed that these measures are intended to safeguard national security and interests while fulfilling international non-proliferation obligations.

It further alleged that the move is aimed at deterring Japan's remilitarization and attempts at nuclear armament.

In a Q&A session with reporters, a spokesperson for the Ministry of Commerce criticized Japan, stating, "Instead of reflecting on its mistakes, Japan is actively pursuing a 'new form of militarism,' accelerating its remilitarization, deploying offensive weapons, and launching offensive missiles abroad."

The spokesperson added, "We hope Japan will turn away from its wrong path, rectify its mistakes, genuinely reflect on its actions, and return to the right track," noting that "these measures only restrict the export of dual-use items to a small number of Japanese entities; they do not affect normal economic and trade exchanges between China and Japan, and law-abiding Japanese firms need not be concerned."

Previously, in February, China implemented similar sanctions, placing 20 Japanese institutions and companies, including Mitsubishi Shipbuilding, on an export control list, and 20 others, such as Subaru, on a watch list.