China Targets Japan Defense Companies in Sweeping Export Ban

Article content(Bloomberg) — China blacklisted 20 Japanese entities including affiliates of Mitsubishi Heavy Industries, escalating the dispute between Asia’s largest economies following Prime Minister Sanae Takaichi’s electoral victory.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Ministry of Commerce added the firms to an export control list effective immediately, according to a Tuesday statement. The designation prohibits exporters from supplying dual-use items — goods with both civilian and military applications — to some of Japan’s biggest defense contractors. It also bars overseas entities from providing the firms with dual-use technology that originated in China. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe news triggered a selloff in Tokyo’s defense and heavy machinery sectors, with Mitsubishi Heavy shares reversing gains to drop as much as 3.6%. Kawasaki Heavy and IHI Corp. extended losses to fall more than 5%.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentIn a secondary move, Beijing placed an additional 20 entities, including Subaru and Mitsubishi Materials Corp., on a monitor list that also took effect immediately. While not an outright ban, this status subjects exporters to stricter checks when they apply for a license to export dual-use items.Article contentThe move marks the latest escalation in a dispute over comments on Taiwan by Takaichi last year. The Japanese leader secured a resounding victory in an election earlier this month, handing her a strong mandate to pursue her agenda. Article content“The purpose of these measures is to deter Japan’s ‘remilitarization’ and its nuclear ambitions. These actions are entirely justified, reasonable, and legal,” the Ministry of Commerce said in a separate statement on Tuesday. Article contentChina’s dual-use export control list features more than 800 items, ranging from rare earths, chemicals, electronics and sensors to equipment and technologies used in shipping and aerospace. In January, China banned all dual-use items from being exported to Japan for military use. Article contentMitsubishi Heavy is one of Japan’s largest machine manufacturers, ranging from equipment for aircrafts, engines power plants and maritime systems. It has previously pinpointed China as a key market for the sale of gas turbines and engines, and is one of its major hubs for servicing equipment.Article contentThe company is also pushing ahead with developing next-generation nuclear energy technology.Article content—With assistance from Alice French.Article content(Updates with more details.)Article contentTrending Posthaste: Forget tariffs, here's how Trump is really making money off Canada News IBM shares plunge as Anthropic touts COBOL modernization efforts Innovation Subscriber only. Garry Marr: There's a great divide in Canada's office real estate market and it's creating big winners and big losers Subscriber only Commercial Real Estate Loblaw plans $2.4-billion investment in 2026, including 70 new stores Retail & Marketing Oil Steadies as Trump Reiterates Preference for Deal with Iran PMN Business Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Forget tariffs, here's how Trump is really making money off Canada News IBM shares plunge as Anthropic touts COBOL modernization efforts Innovation Subscriber only. Garry Marr: There's a great divide in Canada's office real estate market and it's creating big winners and big losers Subscriber only Commercial Real Estate Loblaw plans $2.4-billion investment in 2026, including 70 new stores Retail & Marketing Oil Steadies as Trump Reiterates Preference for Deal with Iran PMN Business