China Restricts Export of Dual-use Items to Japanese Companies

China announced export ban on dual-use items against Japanese private companies on February 26th. The companies that were applied export control amounted to twenty. China’s Ministry of Commerce (MOFCOM) argued that Japan was accelerating its effort of remilitarization, citing its expansion of defense capability or nuclear ambitions. The government of Japan firmly opposed China’s unilateral measures for economic pressure. 

Twenty entities were listed as the companies or institutes to which exporting dual-use items are restricted. Companies that export goods or technologies that have both civilian and military applications from China to listed entities will need to submit a risk assessment report and a written commitment that the items will not be used to enhance Japan’s military strength.

 

The listed entities include five companies in Mitsubishi Heavy Industries Group including Mitsubishi Shipbuilding, two in Kawasaki Heavy Industries Group, six in IHI (Ishikawajima-Harima Heavy Industry) Group and subsidiaries of Fujitsu, NEC or others. Governmental institutes such as National Defense Academy and Japan Aerospace Exploration Agency (JAXA) also included in the list.

 

The MOFCOM also released a list of other twenty Japanese companies to which exports would be under watch. They include carmakers (Subaru and Hino Motors), oil company (ENEOS), electronics maker (TDK), aerospace companies (Fuji Aerospace Technology, Mitsui Bussan Aerospace and Itochu Aviation), and research institute (Institute of Science Tokyo).

 

China asserts that Japan has been expanding its military forces, developing offensive capabilities, lifting restrictions on the export of weapons and revising its Three Non-Nuclear Principles. “These moves reflect Japan’s dangerous trend of rapid remilitarization as well as its nuclear ambitions, posing a threat to regional and global peace,” MOFCOM’s spokesperson, He Yongqian, reportedly said.

 

Deputy Chief Cabinet Secretary of Japan, Kei Sato, expressed Japan’s standpoint, saying that the measure taken by China cannot be tolerated and it was extremely regrettable. “As we firmly protested it, the government of Japan will take necessary measures with detailed examination,” said Sato in his press conference.

 

Prime Minister Sanae Takaichi keeps on saying that it is important for both governments to maintain dialogue, because they have issues to talk. However, it is true that Takaichi administration is considering expansion of defense capability with accumulation of defense budget, or removing restriction on export of defense equipment. She has not explained what she meant when she referred to Japan’s exercise of collective self-defense right in Taiwan contingency last November. It is Takaichi who needs to find an opportunity to talk with China on her policies.

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