25.02.2026

China Targets Japanese Firms Amid Rising Tensions

BEIJING (AP) — China on Tuesday put 20 Japanese companies on an export control list and 20 others on a watchlist, as tensions continue over the Japanese leader’s previous comments on Taiwan, the self-governed island Beijing claims as its own

BEIJING (AP) — On Tuesday, China announced that it has placed 20 Japanese companies on an export control list and an additional 20 companies on a watchlist, in the context of escalating tensions related to comments made by Japanese Prime Minister Sanae Takaichi regarding Taiwan, the self-governed island that China claims as its own.

According to the statement issued by China’s Commerce Ministry, exporters in China will be prohibited from selling dual-use goods—items that can be utilized for both civilian and military purposes—to the 20 designated Japanese companies. The targeted firms include multiple subsidiaries of Mitsubishi Heavy Industries, which are engaged in shipbuilding, aircraft engine production, and maritime machinery manufacturing, as well as branches of Kawasaki Heavy Industries and Fujitsu, among others.

In addition to this ban, foreign organizations or individuals will also be restricted from providing any dual-use items originating from China to the specified 20 companies. The ministry's statement indicated, "All ongoing related activities must cease immediately."

A separate watchlist includes another 20 Japanese companies for which Chinese exporters are mandated to submit individual export license applications. These applications must include risk assessment reports and written commitments asserting that the dual-use goods will not be utilized by Japan’s military. Companies identified on this list include Subaru Corporation, Mitsubishi Materials Corporation, and the Institute of Science Tokyo, among others.

The Chinese Commerce Ministry justified these measures as a means to limit Japan's remilitarization and nuclear intentions, stating that the actions taken are "entirely legitimate, reasonable, and legal." It emphasized that these measures are directed towards a limited number of Japanese entities and specifically aim at dual-use items, asserting that they will not disrupt normal economic and trade relationships between China and Japan. It reassured that honest and law-abiding Japanese entities "have absolutely nothing to worry about."

This latest initiative from China occurs concurrently with ongoing tensions between Beijing and Tokyo. These tensions have been particularly fueled by earlier remarks from Prime Minister Takaichi, who suggested Japan might intervene militarily should China initiate an attack on Taiwan. Beijing views Taiwan as a breakaway province and has expressed readiness to annex it by force if necessary, reacting strongly to any international support for Taiwan's sovereignty.

Moreover, Takaichi's political faction achieved a significant electoral victory in parliamentary elections earlier this month, which positions her to reinforce a conservative shift in Japan’s security policies, immigration practices, and other related areas.

The announcement from China's Commerce Ministry signals a continued focus on managing geopolitical relationships within the region and reflects the heightened sensitivities surrounding defense and military capabilities amid rising tensions over Taiwan.