China further escalated its dispute with Japan by adding 20 Japanese entities to an export restriction list that blocks their access to dual-use (civilian and military) goods. The Beijing administration said the move aims to protect national security and comply with international nonproliferation obligations.
In a written statement from China's Ministry of Commerce, it was stated that the entities on the blacklist "contribute to enhancing Japan's military capacity." It emphasized that the restrictions are intended to "protect national security and interests" and "comply with international commitments, especially in the field of nonproliferation."
The decision comes at a time of rising tensions between Beijing and Tokyo. Japanese Prime Minister Sanae Takaichi hinted last November that Japan could intervene militarily if China, which claims Taiwan as its own territory, were to attack the island.
Since Takaichi took office, Japan has adopted a more proactive defense approach with the support of the United States. Increasing military spending, Tokyo is trying to balance China's growing military capacity by strengthening security partnerships with regional allies such as the Philippines.
In a separate statement, a spokesperson for China's Ministry of Commerce said, "China's decision is completely justified." The spokesperson argued that the restrictions will not affect normal economic and trade exchanges between the two countries, while accusing Tokyo of "taking a wrong path recently."
The targeted entities include technology companies and specialized units supplying Japan's defense sector. Topping the list are the "Mitsubishi Heavy Industries" (MHI) group and the National Defense Research Institute, a research center affiliated with Japan's Ministry of Defense.
This step expands the restrictions Beijing has imposed on the export of dual-use goods to Japan since the beginning of January. Previous reports in the Japanese press said China had also imposed restrictions on shipments of rare earth elements.
China has near-complete dominance in the production and export of rare earth elements used in manufacturing advanced technologies such as missile guidance systems and laser devices. Japan meets about 70 percent of its need for these minerals from China.
On the same day, Beijing added another 20 Japanese entities to a "monitoring list." This list requires Chinese exporters to conduct stricter risk assessments and request assurances before sending dual-use goods to those buyers.
The Japanese government reacted strongly to China's sanction decision. Japanese government spokesperson Minoru Kihara said, "Our government has conveyed a strong protest and demanded the cancellation of these measures. We will carefully examine the consequences of these steps and take necessary action."
China's latest move signals that tensions will continue between East Asia's two largest economies, where trade, technology and regional security issues are intertwined, particularly in the context of Taiwan and advanced industrial supply chains.