China imposes export controls on 40 Japanese entities as tensions with
Tokyo rise
[June 29, 2026] By
SIMINA MISTREANU
TAIPEI, Taiwan (AP) — China imposed new export controls Monday on 40
Japanese entities it says are contributing to the country’s
“remilitarization,” as tensions with Tokyo rise.
Relations between Beijing and Tokyo have been increasingly tense since
Japanese Prime Minister Sanae Takaichi last year implied Japan could
intervene if China used military force against Taiwan, an island
democracy China claims as its own.
Meanwhile, Japan has accelerated its military expansion, especially by
adding offensive capabilities, which Beijing has condemned.
China's Commerce Ministry on Monday placed 20 Japanese entities,
including multiple divisions of Mitsubishi Corporation, on a control
list, which prohibits Chinese and foreign exporters from selling to them
dual-use items made in China. Dual-use items can be used for both
civilian and military purposes.
Additionally, 20 other entities have been added to a watch list for
dual-use items, according to the ministry. It includes Mitsui E&S, which
makes engines and other equipment for ships, as well as divisions of
Fujitsu and Komatsu corporations.
Chinese companies exporting to these firms will be required to apply for
special licenses, submit risk assessment reports on the Japanese
companies and written pledges that the dual-use items will not be used
for military purposes.
Beijing and Tokyo spar over export measures
The export controls are “entirely justified, reasonable and lawful," the
Chinese Commerce Ministry said, adding they are aimed at "firmly
deterring Japan’s reckless pursuit of ‘new militarism.’”
“We hope Japan will recognize its mistakes, reverse its wrongful course,
genuinely reflect on its past and return to the right track,” it added.
Japan’s top government spokesperson called the curbs as “unacceptable
and extremely regrettable,” while calling on Beijing to retract the
measures.
Chief Cabinet Secretary Minoru Kihara said Monday that Japan would take
necessary countermeasures after thoroughly assessing the curbs and their
impact.
Under Takaichi, Japan's military has been equipped with more offensive
capabilities, including long-range missiles on remote islands. Exports
of lethal weapons are now allowed under a new policy. Japan will revise
its defense and security documents by December, which could further
increase its defense budget.
On Monday, Japan's Ground Self-Defense Force announced the deployment of
a Type-12 missile launcher on the southernmost remote island of
Minamitorishima, an apparent response to China’s growing activity
expanding into the Pacific.
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A delivery man drives past the Japanese Embassy in Beijing on Nov.
24, 2025. (AP Photo/Ng Han Guan)
 The curbs serve as a diplomatic
message, an expert says
In February, China put 20 Japanese companies on an export control
list and 20 others on a watch list.
The Commerce Ministry said that since then, “instead of reflecting
on its past and correcting its course, Japan has continued down the
wrong path” by accelerating remilitarization, deploying offensive
weapons and launching missiles.
The ministry emphasized the curbs affect only a small number of
Japanese entities, and the measures only apply to dual-use items.
“They do not affect normal Sino-Japanese economic and trade
exchanges, and honest and law-abiding Japanese entities have
absolutely nothing to worry about.”
The measures function more as a "diplomatic message” as Beijing
steps up its pressure on Tokyo, said George Chen, partner for
Greater China at the advisory firm The Asia Group.
“From Beijing’s perspective, Japan has not taken meaningful actions
to stabilize bilateral ties,” Chen said. “And concerns are growing
in China about deeper defense cooperation between Japan, the United
States, and potentially other partners.”
In the short term, Japan–China relations will likely remain fragile
“and at risk of slipping further if neither side moves to arrest the
downward trend,” he added.
For Beijing, the issue of Taiwan is particularly sensitive. China
considers the self-ruled island its own territory, to be retaken by
force if necessary, and has increased military pressure on it.
Earlier this month, the Chinese coast guard conducted patrols east
of Taiwan in what state media described a “pointed warning” to Japan
and the Philippines following an announcement that the countries
would discuss their maritime boundaries in waters that Beijing views
as its own.
The United Kingdom, Germany and France in a rare joint statement
last week condemned Chinese activities in the waters east of Taiwan,
adding they opposed any change of the status quo between China and
Taiwan.
___
Associated Press writers Mari Yamaguchi in Tokyo and Kanis Leung and
Chan Ho-him in Hong Kong contributed to this report.
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