China blacklists Japanese defense groups, tightens dual-use export controls

China widened its export controls on Japanese defense-linked entities, blacklisting four government defense research institutes and placing dozens of other organizations under tighter scrutiny. The move immediately barred Chinese exporters, along with foreign firms or individuals, from transferring Chinese-origin dual-use items to the named entities.

The restrictions deepen a pressure campaign Beijing began in January over Japan’s access to goods that can serve both civilian and military uses, including minerals and components. China’s commerce ministry added 20 entities to its export control list, among them Japan’s National Institute for Defense Studies and research centers tied to ground, naval and air systems. Another 20 entities were put on a watch list that requires enhanced licensing review.

Those watch-list names include Mitsui E&S, drone maker Terra Drone, nuclear fuel processors and multiple units of OKI Electric Industry. Several units within Mitsubishi Electric and Mitsubishi Heavy Industries were also targeted. Ongoing transactions involving the listed groups must stop at once.

Beijing said exports connected to Japanese military users, or to any end use that would strengthen Japan’s defense capabilities, would not be approved. Japan’s Prime Minister Sanae Takaichi’s comments on Taiwan have sharpened the dispute, and Beijing has accused Tokyo of sliding toward what it calls new-style militarism.

The restrictions touch sectors that rely on rare earths, sensitive components and licensing for dual-use items, all of which are central to electronics, drones, energy systems and advanced materials.