China commerce ministry: export restrictions on 20 Japanese firms target Japan's remilitarization and nuclear goals

China’s Ministry of Commerce (MOFCOM) has imposed export restrictions on 20 Japanese entities, citing concerns over Japan’s accelerating military buildup and alleged nuclear ambitions. The move, announced on February 24, 2026, places these firms on an Export Control List, effectively prohibiting the export of dual-use items to them. An additional 20 Japanese entities were added to a Watch List, requiring stricter scrutiny for any dual-use exports.

According to MOFCOM, the measures are justified under China’s obligations to prevent the proliferation of weapons of mass destruction and to safeguard national security. The ministry emphasized that the targeted entities are involved in enhancing Japan’s military capabilities, including shipbuilding, aerospace, and defense-related technologies. The restricted items include rare earths and other critical materials essential for advanced manufacturing and defense systems.

Japan has strongly protested the move, with officials calling it “absolutely unacceptable and deeply regrettable.” The Japanese government has demanded the immediate withdrawal of the restrictions, arguing they deviate from international norms. Meanwhile, Chinese officials have reiterated that the measures apply only to a small number of entities and will not disrupt broader economic and trade relations between the two countries.

The action reflects a broader escalation in Sino-Japanese tensions, particularly following Japan’s recent military policy shifts, including increased defense spending and a review of arms export rules. Analysts suggest the move is also a response to Japan’s closer alignment with U.S. security interests and its growing military posture in the Indo-Pacific region.

The export control measures are part of China’s evolving legal framework for managing dual-use technologies, which now includes mechanisms such as the Watch List to allow for more nuanced and targeted regulatory actions. These tools enable China to apply pressure without resorting to broad trade restrictions that could harm broader economic ties.