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China Bans Dual-Use Exports to 20 Japanese Defense Entities, Adds 20 to Watch List

Tokyo has lodged a formal protest after Beijing moved to curb shipments of dual-use goods to Japanese defense-linked entities.

Overview

  • China’s Commerce Ministry said the measures take effect immediately, prohibit exports of China‑origin dual‑use items to the 20 listed entities, and bar overseas parties from re‑transferring such items to them.
  • Targets include affiliates of Mitsubishi Heavy Industries and IHI, Kawasaki Heavy Industries’ aerospace unit, Fujitsu and NEC defense units, Japan Marine United, the National Defense Academy of Japan, and JAXA.
  • A further 20 entities, including Subaru, ENEOS, Mitsubishi Materials, TDK, and trading and electronics firms, were placed on a watch list that requires case‑by‑case licenses, risk assessments, and written end‑use pledges.
  • MOFCOM said it will apply stricter end‑user and end‑use reviews and noted watch‑listed firms may apply for removal after verification, while insisting the steps do not affect “normal” trade.
  • Japan filed a formal protest and called the curbs “absolutely intolerable,” as analysts flagged higher compliance costs and potential procurement delays for affected supply chains.