China acts against 40 Japanese entities

In a significant move, China's commerce ministry has imposed export controls on 40 Japanese entities, including notable firms such as Mitsubishi and the Japanese space agency, citing national security concerns over military affiliations. This action involves placing 20 entities under strict export scrutiny for dual-use items, a category that includes products with both civilian and military applications. The ministry's statement indicated that these measures are aimed at addressing Japan's perceived 'remilitarisation' and nuclear aspirations, asserting that they are lawful and reasonable. Furthermore, a 'watch list' has been established for an additional 20 Japanese entities, including Subaru, which will require enhanced scrutiny for exports. The Chinese government emphasized that these measures do not hinder normal trade between China and Japan, and compliant companies can seek removal from the watch list. This escalation in tensions follows Japanese Prime Minister Sanae Takaichi's remarks regarding potential military responses to threats against Taiwan, a territory China views as a breakaway province. Recent weeks have seen China tightening restrictions on exports of critical rare earth materials to Japan, contributing to a growing climate of economic and diplomatic strain between the two nations.