China has imposed new export restrictions on 40 Japanese companies, accusing them of supporting Japan's military expansion, in the latest sign of worsening ties between Beijing and Tokyo.
The Chinese Commerce Ministry on Monday placed 20 Japanese entities, including subsidiaries of Mitsubishi Electric and Mitsubishi Heavy Industries, on its export control list. The move bars Chinese and foreign suppliers from exporting China-made dual-use goods—items that have both civilian and military applications—to those firms.
Another 20 companies, including Mitsui E&S as well as divisions of Fujitsu and Komatsu, were added to a watch list. Chinese exporters dealing with these firms must now obtain special licences, conduct risk assessments and provide written assurances that the products will not be used for military purposes.
Beijing defended the measures as lawful and necessary, saying they are intended to curb what it described as Japan's pursuit of "new militarism." The ministry urged Tokyo to reverse its current policies and reflect on its past actions.
Japan strongly protested the restrictions, with Chief Cabinet Secretary Minoru Kihara calling them "unacceptable and extremely regrettable." He said the government would assess their impact before deciding on an appropriate response.
Relations between the two countries have become increasingly strained over security issues, particularly following comments by Prime Minister Sanae Takaichi suggesting Japan could become involved if China used force against Taiwan. Beijing, which claims Taiwan as its territory, views the issue as highly sensitive.
Japan has also expanded its defence capabilities in recent years by deploying longer-range missiles, easing restrictions on weapons exports and increasing defence spending. On Monday, Japan's Ground Self-Defense Force announced the deployment of a Type-12 missile launcher on the remote island of Minamitorishima, a move widely seen as a response to China's growing military presence in the Pacific.
This is the second round of such measures by Beijing this year. In February, China imposed similar export controls on another 40 Japanese firms.
Chinese authorities insisted the restrictions target only a limited number of companies involved in dual-use technology and would not disrupt normal trade between the two countries.
Analysts said the latest move is intended more as a diplomatic signal than an economic sanction. George Chen, a partner at advisory firm The Asia Group, said Beijing appears increasingly concerned about closer defence cooperation between Japan, the United States and other regional partners.
He warned that bilateral relations are likely to remain fragile unless both sides take steps to ease tensions.
The latest developments come as China continues to increase military and coast guard activities around Taiwan. Earlier this month, Chinese coast guard vessels carried out patrols east of the island in what state media described as a warning to Japan and the Philippines over maritime issues. Last week, the United Kingdom, Germany and France jointly criticised China's activities near Taiwan and reiterated their opposition to any unilateral change to the status quo.