China Tightens Trade Restrictions On 20 Japanese Entities Amid Security Row

China's Ministry of Commerce added 20 Japanese entities to its export control list over concerns about Japan's military expansion & nuclear ambitions.

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China's Ministry of Commerce on Monday announced that it has placed 20 Japanese entities on its export control list, citing concerns over Japan's "remilitarisation" and alleged efforts to "acquire nuclear weapons," reported South China Morning Post.

In a statement, the ministry said the move targets organisations “involved in enhancing Japan's military capabilities." The entities named include the Institute for Defence Studies, along with subsidiaries of major firms such as Mitsubishi, Komatsu and Fujitsu, according to a report in Reuters.

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Companies including Terra Drone Corp, ACSL Ltd and OKI Electric Industry are also on the list, as per Investing.com.  The same entities have additionally been placed on a separate watch list, subjecting them to heightened scrutiny.

Beijing said the decision was aimed at safeguarding China's national security and interests, while also fulfilling international obligations such as non-proliferation.

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A ministry spokesperson stressed that the measures were in line with Chinese law and limited in scope. "They are directed at only a small number of Japanese entities and concern dual-use items,” the spokesperson said, according to a report in South China Morning Post. 

The official added that the restrictions would not disrupt broader economic ties between the two countries. “Normal China-Japan trade will not be affected, and law-abiding Japanese businesses have nothing to worry about,” the spokesperson added.

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The latest move comes after a similar action in February, when China added 20 Japanese entities to its export control list and another 20 to a watch list, in what was seen as an effort to tighten oversight of sensitive trade and increase economic pressure on Tokyo.

It marks the latest escalation in a dispute over comments on Taiwan by Japan's Prime Minister Sanae Takaichi last year, when she suggested Tokyo could deploy its military if China attempts to seize Taiwan, a self-ruled democracy claimed by Beijing. Takaichi has refused to take her comments back and reiterated that Tokyo's policy hasn't changed.

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