Beijing targets more Japanese groups over‘militarism’ accusations

Financial Times UK

30 Jun 2026

LEO LEWIS — TOKYO EDWARD WHITE — SHANGHAI Additional contributions from Nian Liu in Shanghai

The move yesterday, which restricts Chinese exports of “dual use” items that might

serve both civilian and military purposes, is the latest escalation of a dispute that

has plunged Japan-China relations into their worst state in more than a decade.

Beijing remains furious with the Japanese prime minister for her suggestion last

year that Japan could become militarily embroiled in regional conict if China were

to invade Taiwan. China has accused her administration of “aggressive remilitarisation” and of acting in breach of Japan’s pacist constitution.

Takaichi, who describes Japan as facing its most severe security environment since

the second world war, has refused to retract her comments.

The companies added to the export control list include subsidiaries of Mitsubishi

Electric and Mitsubishi Heavy Industries. The restrictions will also apply to several

Japanese government research organisations, including the National Institute for

Defense Studies.

Chinese exporters are banned from selling to the entities on the restricted list and

foreign organisations or individuals are also prohibited from selling dual-use items

that were built or originated in China.

China last expanded the list to 40 companies in February.

In parallel with the extended export control list, China yesterday put 20 Japanese

companies and organisations on its watchlist, meaning they will be subject to closer

scrutiny in any matters relating to potential dual-use technologies. The list includes

subsidiaries of Fujitsu, Mitsui E&S, Hitachi, Komatsu and Terra Drone.

Beijing’s targeting of Japanese companies is the latest example of its weaponisation

of trade. The EU Chamber of Commerce in China in April found that Beijing had

nearly tripled its use of export controls in the past ve years.

“Japan has not repented, but instead gone further down the wrong path, accelerating its new type of militarism, speeding up remilitarisation, deploying offensive

weapons and launching offensive missiles overseas,” China’s commerce ministry

said.Last week, China’s foreign affairs ministry noted Japan’s decision to lift its selmposed ban on the export of lethal weapons and its efforts to build a “combat-capable” military system.

Japan’s most senior government spokesperson yesterday accused China Coast

Guard vessels of intermittently sailing inside Japan’s exclusive economic zone in an

area east of Taiwan.

Minoru Kihara, Japan’s chief cabinet secretary, said: “Such activities by China are

unacceptable to Japan, and we have repeatedly lodged protests through diplomatic

channels.”

China’s commerce ministry and Japan’s defence ministry did not respond to