China acts against 40 Japanese entities over military ties

China's commerce ministry took action against 40 Japanese companies and entities on Tuesday, citing national security concerns over their military ties.

It imposed export controls on 20 entities, including Mitsubishi and the Japanese space agency, accusing them of helping to enhance Japan's military capabilities.

The ministry added a further 20 Japanese entities, including Subaru, to a "watch list" requiring stricter reviews of exports of "dual-use items".


"The above measures are aimed at curbing Japans' 'remilitarisation' and nuclear ambitions and are completely legitimate, reasonable and lawful," a commerce ministry statement said.

"China's lawful listing actions target only a small number of Japanese entities, relevant measures target dual-use items and do not impact normal economic (exchanges) and trade between China and Japan," it said, adding that "honest and law-abiding Japanese entities have nothing to worry about".

Companies can apply to be removed from the "watch list" if they cooperate with Beijing's verification terms.

China has ramped up pressure on its neighbour since Japanese Prime Minister Sanae Takaichi suggested in November that Tokyo may react militarily to an attack on Taiwan, which Beijing has vowed to seize control of by force if necessary.

Last month, Beijing announced a broad ban on the export of "dual-use" goods with potential military applications.

China has since begun restricting exports to Japanese companies of scarce and expensive "heavy" rare earths, as well as the powerful magnets containing them, the Wall Street Journal reported, citing two exporters in China.