China Adds More Japanese Entities to Export Control List — 2nd Update

By Jason Douglas

TOKYO--China hit dozens more Japanese companies and several research institutes with trade restrictions, marking another escalation in Beijing's campaign of economic coercion against Tokyo.

The new measures, announced by China's commerce ministry on Monday, show Beijing isn't backing down in a dispute that has rumbled on for months. China said the measures announced Monday were aimed at preventing Chinese-made goods from being used to enhance Japan's military strength.

The Chinese commerce ministry said it added 20 Japanese entities, including some defense contractors, to an export control list that prohibits Chinese firms from selling dual-use products to those companies. Dual-use items are those that could have military applications, and include rare earths used in motors and magnets, machine tools, batteries and chip-making equipment.

China in February said Japanese defense contractors and industrial firms including IHI and NEC were banned from receiving dual-use goods.

Those affected by the latest restrictions include units of Mitsubishi Heavy Industries, which makes warships and other defense systems, and Nikko Tokki, a firm that provides parts and maintenance services for vehicles of Japan's Self-Defense Forces and coast guard.

A unit of construction equipment maker Komatsu was also included, as were Japan's National Institute for Defense Studies and several other research organizations.

Japanese Prime Minister Sanae Takaichi angered Beijing in November when she said Japan could get sucked into any conflict over Taiwan, a self-ruled island democracy that Beijing views as part of China's territory.

Beijing in response throttled the number of flights to the country and advised Chinese tourists to stay away. It has also squeezed exports of heavy rare earths to Japan, critical minerals that are essential for manufacturing.

Last week, China said it had detained two Japanese nationals, without disclosing the reason.

A security hawk, Takaichi has boosted defense spending in Japan and relaxed restrictions on exports of lethal weapons.

In a separate announcement Monday, the Chinese commerce ministry said an additional 20 Japanese companies in sectors including drones and nuclear fuel have been added to an export watchlist. Firms on this list don't face a ban on receiving dual-use goods, but are subject to greater scrutiny for potential military uses.

Write to Jason Douglas at jason.douglas@wsj.com

(END) Dow Jones Newswires

June 29, 2026 00:33 ET (04:33 GMT)