China Imposes Export Controls on 40 Japanese Entities Over 'Remilitarization' Concerns

China imposed export controls on 40 Japanese entities on June 29, 2026, citing remilitarization concerns, bringing the total to 80 since February. The measures target dual-use items and include Mitsubishi, Mitsui E&S, Fujitsu, and Komatsu divisions. Japan called the curbs unacceptable and lodged protests. Tensions escalated after Prime Minister Takaichi linked Japan's security to Taiwan and accelerated military expansion with offensive capabilities, doubled defense spending, and live-fire drills in the Philippines.

Chinese export controls

• ▪China placed 20 Japanese entities, including multiple divisions of Mitsubishi Corporation, on a control list prohibiting Chinese and foreign exporters from selling dual-use items made in China to them
• ▪China placed 20 Japanese companies on an export control list and 20 others on a watch list in February 2026
• ▪The total number of Japanese entities placed on China's dual-use blacklist or watch list since February 2026 reached 80 with the June 29 announcement
• ▪China added 20 Japanese entities to a watch list for dual-use items, including Mitsui E&S, Fujitsu divisions, and Komatsu divisions
• ▪China imposed export controls on June 29, 2026, on 40 Japanese entities, citing concerns over Japan's remilitarization

Japan remilitarization concerns

• ▪Japan's Ground Self-Defense Force deployed a Type-12 missile launcher on the southernmost remote island of Minamitorishima on June 29, 2026, in apparent response to China's growing Pacific activity
• ▪Japan now allows exports of lethal weapons under a new policy implemented under Prime Minister Sanae Takaichi
• ▪Japan will revise its defense and security documents by December 2026, which could further increase its defense budget
• ▪Japan doubled its defense spending to 2 percent of GDP and loosened restrictions on exports of lethal weapons to regional partners
• ▪Japan has accelerated its military expansion by adding offensive capabilities, including long-range missiles on remote islands
• ▪Japan participated in live-fire drills for the first time in the Philippines during the U.S.-led Balikatan exercises in May 2026

Bilateral relations deterioration

• ▪Japan lodged strong protests with China and called for existing export control measures to be lifted
• ▪Relations between Beijing and Tokyo have been increasingly tense since Japanese Prime Minister Sanae Takaichi implied Japan could intervene if China used military force against Taiwan
• ▪China ramped up its remilitarization narrative since November 2025, when Japanese Prime Minister Sanae Takaichi linked Japan's security to that of Taiwan
• ▪Japanese Chief Cabinet Secretary Minoru Kihara called the export controls unacceptable and extremely regrettable on June 29, 2026, and called on Beijing to retract the measures

Taiwan sovereignty tensions

• ▪Japanese Prime Minister Sanae Takaichi told lawmakers that a Chinese blockade of Taiwan would constitute a survival-threatening situation that could warrant joint intervention alongside U.S. forces
• ▪The Chinese coast guard conducted patrols east of Taiwan in June 2026 in what state media described as a pointed warning to Japan and the Philippines following an announcement that the countries would discuss their maritime boundaries

Regional security dynamics

• ▪The four rounds of export controls imposed by China since January 2026 cover rare earth elements and other critical minerals essential to advanced civilian and military technologies
• ▪The United Kingdom, Germany, and France in a joint statement condemned Chinese activities in the waters east of Taiwan and opposed any change of the status quo between China and Taiwan
• ▪Japan plans to stand up anti-aircraft missiles on outlying islands, citing China's military buildup and nuclear and missile threats from North Korea