China says its measures against Japan are legitimate and lawful
TL;DR
China has imposed export controls on dual-use items to about 20 Japanese entities, citing national security concerns over Japan's remilitarization. The measures are based on China's Export Control Law and target companies like Mitsubishi Heavy Industries, affecting trade and geopolitical tensions.
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China says its measures against Japan are legitimate and lawful
China Asserts Legality of Export Controls Targeting Japanese Entities
On February 24, 2026, China’s Ministry of Commerce announced restrictions on the export of dual-use items to approximately 20 Japanese entities, citing concerns over Japan’s “remilitarisation” and nuclear ambitions. The ministry emphasized that the measures are “completely legitimate, reasonable, and lawful”, aligning with China’s national security priorities. The targeted entities include subsidiaries of Mitsubishi Heavy Industries, Japan’s space agency, and automaker Subaru, among others according to reports.
The move follows a broader escalation in Sino-Japanese tensions, including a January 2026 ban on dual-use exports to Japan and recent diplomatic actions such as the recall of pandas from Tokyo and a suspension of seafood imports as documented. China’s commerce ministry stated that the restrictions apply to goods and technologies that could enhance Japan’s military capabilities, including advanced minerals, aerospace materials, and electronics according to legal analysis. Entities on a “watch list” will face stricter export reviews, while third-party companies facilitating non-compliant transfers may face penalties under China’s Export Control Law as outlined.
China’s legal framework, including the 2020 Export Control Law and 2024 Dual-Use Item Regulations, underpins these measures, enabling extraterritorial enforcement against foreign firms according to legal experts. The ministry reiterated that “entities operating in good faith” should not face disruptions to normal trade, though Japanese stocks of affected firms fell sharply, and the yen dipped 0.4% against the dollar according to financial reports.
Japan’s trade officials have pledged to “take appropriate measures” after assessing the impact, while maintaining that the restrictions could harm bilateral economic ties as stated. China’s actions reflect a strategic calculus to counter perceived military threats, particularly after Japanese Prime Minister Sanae Takaichi’s November 2025 comments on potential military intervention in a Taiwan crisis as reported.
The measures underscore growing geopolitical risks for global supply chains, particularly in sectors reliant on Chinese rare earths and advanced materials. Investors are advised to monitor compliance requirements and potential shifts in sourcing strategies as tensions persist.