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China Targets 40 Japanese Firms With Dual-Use Controls

China’s Ministry of Commerce issued two lists covering 40 Japanese entities—20 under export controls and 20 on a watch list—restricting dual-use items and naming MHI subsidiaries, IHI and Japan Marine United.
Mitsubishi Heavy Industries Nagasaki shipbuilding facility (Photo: Lloyd’s Register)

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China’s Ministry of Commerce has issued two new lists covering 40 Japanese entities, splitting them into 20 organisations subject to export controls and 20 placed on a watch list. The measures include Japanese shipbuilding and heavy-industry names and apply specifically to dual-use items.

Among those placed under export controls are major defence-related contractors and research institutions, including multiple subsidiaries of Mitsubishi Heavy Industries, as well as IHI Corporation and Japan Marine United. The Ministry said the action is intended to protect national security and national interests and to meet international responsibilities, including non-proliferation.

The announcement states that exporters must not ship dual-use items to the listed entities, which it described as linked to efforts to strengthen Japan’s military capabilities. It also says overseas organisations and individuals are not permitted to pass on or supply dual-use items originating from China to the same entities. Where such activity is already under way, it must be stopped immediately.

The Ministry added that an exception process exists where an export is considered necessary, but only after the exporter files an application with the Ministry of Commerce and obtains approval.

A spokesperson for the Ministry said the intent is to prevent Japan from remilitarising and pursuing nuclear weapons, and described the measures as just, reasonable, and lawful. The spokesperson also said the listings are limited in scope—covering only a small number of entities and only dual-use items—and do not affect normal economic and trade exchanges between China and Japan. The spokesperson added that Japanese companies operating within the law should not be concerned.

Separately, the Ministry placed 20 Japanese entities on a watch list, citing difficulties in confirming the end-users and end-uses for their dual-use items. The watch list includes Subaru Corporation.

Editorial Note:
This article was prepared with the assistance of AI tools to enhance clarity and efficiency.
All information has been reviewed and verified by the HMT News editor.
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