SOURCE / ECONOMY
China includes 20 Japanese entities on watch list, adds another 20 on export control list to curb Japan’s neo-militarist agenda
Published: Jun 29, 2026 11:18 AM
The Ministry of Commerce of China File photo: VCG

The Ministry of Commerce of China File photo: VCG



China’s Ministry of Commerce (MOFCOM) announced on Monday that it has decided to include 20 Japanese entities including MITSUI E&S Co., Ltd on the watch list, and add another 20 Japanese entities including the National Institute for Defense Studies, on the export control list for dual-use items. 

Both announcements take effect as of the date of publication.

A spokesperson for the MOFCOM said on Monday that China’s relevant measures are entirely legitimate, reasonable and lawful. The move is taken to resolutely curb Japan’s moves toward neo-militarist agenda. China urges Japan to correct its wrongdoings, conduct sincere reflection, and return to the right track.

According to the ministry, it decided to include 20 Japanese entities, including MITSUI E&S Co., Ltd, Mitsui Bussan Aerospace Co., Ltd. Maintenance Center, and Terra Drone Corporation on the watch list, because their final users and end uses of dual-use items cannot be verified.

The ministry said that export operators are not allowed to apply for general licenses or obtain export certificates through registration and information filing when exporting dual-use items to the above-mentioned entities. When applying for individual licenses, they must submit a risk assessment report on the entities listed on the watch list and provide a written commitment that the dual-use items will not be used for any purposes that may contribute to enhancing Japan’s military capabilities.

The ministry will impose stricter end-user and end-use scrutiny on the export of dual-use items to entities listed on the watch list. Exports related to Japanese military users, military purposes, or any other end users and end uses that may contribute to enhancing Japan's military capabilities will not be approved, the ministry noted.

Entities listed on the watch list that fulfill their obligation to cooperate with verification may apply to be removed from the watch list. After verification, the MOFCOM may remove them from the watch list, it added.

On the same day, the MOFCOM also announced to include 20 Japanese entities, including the National Institute for Defense Studies, on the export control list, in order to safeguard national security and interests and fulfill international obligations such as non-proliferation.

Export operators are prohibited from exporting dual-use items to the above-mentioned 20 entities. Overseas organizations and individuals are prohibited from transferring or providing dual-use items originating from China to the above-mentioned 20 entities. Any related ongoing activities shall be immediately terminated, the ministry said.

In special circumstances where export is truly necessary, export operators shall submit an application to the ministry, it added.

The MOFCOM spokesperson said on Monday that on February 24, 2026, China added 20 Japanese entities including Mitsubishi Heavy Industries Shipbuilding Co to the export control list and another 20 such entities including SUBARU Corporation to the watch list to curb Japan’s remilitarization and nuclear ambitions. 

Regrettably, Japan has shown no remorse and instead moved further down the wrong path. Japan has stepped up its push for neo-militarism, accelerated remilitarization, deployed offensive weapons and launched offensive missiles outside its territory. In light of the above, China has decided to include relevant Japanese entities on the export control list and watch list in accordance with the Export Control Law and the regulations on export control of dual-use items and other relevant laws and regulations, the spokesperson noted.

Lü Chao, a research fellow at the Liaoning Academy of Social Sciences, told the Global Times on Monday that the MOFCOM’s measures are reasonable, justified, and fully compliant with the law. The relevant actions by Japan have threatened China’s national security. Implementing export controls on dual-use items is entirely an exercise of China’s sovereign rights, he said.

The MOFCOM spokesperson noted that China’s targeted listing covers only a small number of Japanese entities, and the control measures solely apply to dual-use items. Normal economic and trade exchanges between China and Japan will remain unaffected, and law-abiding Japanese enterprises have no grounds for concern.

Lü noted that the goal of the measures is not to suppress ordinary Japanese companies, but to precisely curb the resurgence of Japanese militarism. Japan has been continuously advancing the research, development, and even export of offensive weapons, while pushing forward its remilitarization. This constitutes a major security risk to the Asia-Pacific region and the entire world. 

Japanese entities operating with integrity and in full compliance with the law have nothing to worry about and can continue normal trade with China. Only those entities with ulterior motives that are using the opportunity to manufacture lethal weapons will face targeted controls. China’s stance is entirely open and aboveboard, the expert said.

Japanese Prime Minister Sanae Takaichi's erroneous remarks related to the Taiwan question have had a grave impact on China-Japan relations but the Prime Minister has so far refused to apologize or retract her erroneous remarks. The Japanese side has wantonly provoked China and is actively rallying other countries to stir up confrontation. “China’s control measures will be resolutely implemented. We will never make the slightest concession or change just because Japan plays the victim or seeks backing from external forces,” the expert noted.