The Ministry of Commerce of China File photo: VCG

China’s measures to add certain Japanese entities to the watch list and export controls list, announced by China’s Ministry of Commerce (MOFCOM) on Tuesday, are aimed at curbing Japan’s attempts at “remilitarization” and nuclearization, and are fully justified, reasonable and lawful, a MOFCOM spokesperson said.

These measures, taken in accordance with the law, target only a small number of Japanese entities and apply solely to dual-use items and do not affect normal China-Japan economic and trade exchanges. Japanese entities operating in good faith and in compliance with the law have no need to worry, the spokesperson stressed.

The comments came after MOFCOM on Tuesday released a control list and a watch list involving certain Japanese entities under relevant export control regulations. 

Responding to a media inquiry regarding the considerations behind the measures, the spokesperson said that in accordance with the Export Control Law of the People’s Republic of China and the Regulations on Export Control of Dual-Use Items, China has decided to take two sets of measures.

First, 20 entities, including Mitsubishi Shipbuilding Co, that are involved in activities enhancing Japan’s military capabilities have been added to the control list. Following the designation, export operators are prohibited from exporting dual-use items to the listed entities, and overseas organizations and individuals are prohibited from transferring or providing dual-use items originating from China to them. Relevant ongoing activities must cease immediately, the spokesperson said.

Second, another 20 Japanese entities, including SUBARU Corporation, that are unable to verify the ultimate end users and end uses of dual-use items have been placed on a watch list.

After the listing, export operators are not permitted to apply for general licenses or obtain export certificates through simplified registration procedures when exporting dual-use items to the entities concerned. When applying for a single-item license, exporters must submit a risk assessment report regarding the listed entities and provide a written commitment that the dual-use items will not be used for any purpose that contributes to enhancing Japan’s military capabilities.

MOFCOM will conduct stricter end-user and end-use reviews for exports of dual-use items to entities on the watch list, and exports involving Japanese military users, military purposes, or any other end uses that contribute to enhancing Japan’s military capabilities will not be approved, according to the statement.

Entities placed on the watch list may apply for removal after fulfilling their obligations to cooperate with verification in accordance with article 26 of China’s regulations on export control of dual-use items. MOFCOM will verify the relevant circumstances and may remove them from the watch list upon review.

For Japanese entities not included on the lists but involving Japanese military users, military purposes, or other end uses that contribute to enhancing Japan’s military capabilities, exports of dual-use items will be prohibited in accordance with the announcement on strengthening export control of dual-use items to Japan, the spokesperson added.

Global Times