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Home » Global Supply Chain Management » China Imposes Export Controls Against 40 Japanese Firms

China Imposes Export Controls Against 40 Japanese Firms

A Japanese and Chinese flag side by side, in front of an image of container ships at sea
Photo: iStock / Fahroni
June 29, 2026
SupplyChainBrain

China has imposed export controls on 40 Japanese entities, over claims that Japan is remilitarizing itself in preparation for a potential Chinese invasion of Taiwan. 

According to the Associated Press, China's Commerce Ministry placed 20 Japanese entities on a control list, meaning that Chinese exporters are banned from selling them dual-use items deemed usable for both civilian and military purposes. Another 20 Japanese entities were added to dual-use item watch list, requiring Chinese exporters working with those firms to apply for special licenses, submit risk assessment reports, and provide written pledges that the items won't be used for military purposes.

While China's Commerce Ministry described the new controls as necessary for "firmly deterring Japan's reckless pursuit of 'new militarism,'" a spokesperson for the Japanese government labeled the move as "unacceptable and extremely regrettable." 

In comments delivered to the country's parliament in November 2025, Japanese Prime Minister Sanae Takaichi warned that a Chinese invasion of Taiwan would threaten Japan's survival. Then, in January 2026, China banned the export of dual-use items to Japanese military entities, including advanced electronics, aerospace and aviation components, drones and nuclear technology.

Since taking office in October 2025, Takaichi has moved more long-range missiles to remote islands, allowed the exporting of lethal weapons, and pushed for an increase to Japan's defense budget. Japan also announced on January 29 the deployment of a missile launcher on the island of Minamitorishima, in response to China's recent activity in the Pacific.

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