China imposes new export controls, deepening Japan row

BEIJING: China put 20 more Japanese organisations on a blacklist Monday over the export of items with both military and civilian possible uses, adding fuel to a months-long row with Tokyo.

The new additions, including major companies, “have participated in enhancing Japan’s military capabilities”, the Chinese commerce ministry said in a statement.

Japan’s government spokesman Minoru Kihara called the measures “unacceptable and deeply regrettable” and said Tokyo had “lodged a strong protest and demanded that the measures be withdrawn”.

The two countries have had strained relations since Japanese Prime Minister Sanae Takaichi suggested in November that Tokyo may react militarily to an attack on Taiwan, the self-ruled island Beijing has vowed to seize control of by force if necessary.

China responded furiously, including by advising its citizens — previously the biggest cohort of foreign tourists — to avoid Japan.

Chinese authorities ramped up pressure in February by imposing export restrictions on dozens of Japanese firms over their alleged involvement in building up the country’s military.

The 20 additions to the export blacklist named Monday include specialised subsidiaries and technology firms involved in supplying components and engineering support for Japan’s defence sector.

Among them are the National Institute for Defense Studies and Mitsubishi Electric Defense and Space Technologies Corporation, the statement said.

China’s commerce ministry said the controls require exporters to submit risk assessments and guarantees that dual-use items will not enhance Japanese military strength prior to making shipments.

Those named on the watchlist can apply to be removed by cooperating with “verification” procedures according to Chinese law, the ministry said.

China is the world’s largest producer and refiner of rare earths, which are crucial for various high-tech products including electric vehicles, smartphones, missile guidance systems and lasers.

Japan has “strayed further down the wrong path, intensifying its push for a ‘new form of militarism’”, an unnamed commerce ministry spokesperson said in a statement on the latest measures.