China blacklists 20 Japanese entities that boost Japan's military capacity from export list

China has added 20 Japanese companies and institutions, including Mitsubishi Heavy Industries, to an export restriction list, citing national security and non-proliferation obligations. Japan's government spokesman called the decision 'unacceptable,' protested, and demanded its withdrawal.

Scraper SystemJune 29, 2026, 08:54 PM

China blacklists 20 Japanese entities that boost Japan's military capacity from export list

China has 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 stated the move aims to protect national security and comply with international non-proliferation obligations.

In a written statement from China's Ministry of Commerce, the blacklisted entities were said to have "contributed to enhancing Japan's military capacity." It emphasized that the restrictions are intended to "safeguard national security and interests" and "comply with international commitments, particularly in the field of non-proliferation."

The decision comes at a time of escalating tensions between Beijing and Tokyo. Japanese Prime Minister Sanae Takaichi had hinted last November that Japan could militarily intervene if China were to attack Taiwan, which Beijing considers its own territory.

Since Takaichi took office, Japan has adopted a more proactive defense approach with U.S. support. Tokyo has increased military spending and strengthened security partnerships with regional allies like the Philippines to counterbalance China's growing military capacity.

In a separate statement, a spokesperson for China's Ministry of Commerce said, "China's decision is fully justified." The spokesperson argued the restrictions will not affect normal economic and trade exchanges between the two countries, while accusing Tokyo of "recently taking a wrong path."

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 move expands restrictions China imposed on exports of dual-use products to Japan since the beginning of January. Previous reports in the Japanese press had also indicated that China restricted shipments of rare earth elements.

China has near-total dominance in the production and export of rare earth elements used in 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 seek assurances before shipping dual-use products to those buyers.

The Japanese government reacted sharply to China's sanction decision. Japan's Government Spokesperson Minoru Kihara said, "Our government has lodged a strong protest and demanded the cancellation of these measures. We will carefully examine the implications of these steps and take necessary actions."

China's latest move signals that tensions will persist between East Asia's two largest economies, where trade, technology, and regional security files are intertwined, particularly over Taiwan and advanced industrial supply chains.

China blacklists 20 Japanese entities that boost Japan's military capacity from export list