China expands dual-use export ban to 40 Japanese firms and institutions

By Seo Ji-yeon, The Herald Business

China has tightened export controls on dual-use goods targeting 40 Japanese institutions and companies, citing their involvement in Japan's military buildup and an inability to verify end users and end uses.

China's Ministry of Commerce announced Monday that 20 Japanese entities deemed to have participated in Japan's military expansion have been added to its export control list. Another 20 Japanese firms whose end users and end uses cannot be confirmed have been placed on a caution list. Both measures took effect immediately upon announcement.

The export control list includes the Defense Research Institute, the Ground Systems Research Center, the Naval Systems Research Center and the Aerospace Systems Research Center, along with Nikko Toki, Nikko YPK Corporation, Mitsubishi Electric Defense & Space Technology, and Mitsubishi Heavy Industries Logitech, among others.

Under the new restrictions, Chinese exporters are prohibited from supplying dual-use goods to the listed entities, and foreign organizations or individuals are also barred from transferring or providing Chinese-origin dual-use goods to them.

Any transactions already under way must be halted immediately. Exporters requiring an exception must obtain approval from the Ministry of Commerce.

The caution list includes 20 companies such as Mitsui E&S, the Mitsui Bussan Aerospace Maintenance Center, Fujitsu Network Solutions and Komatsu NTC. Exporters shipping dual-use goods to these firms may not obtain export certificates through general licensing applications or registered-information declaration procedures.

To apply for an individual license, exporters must submit a risk assessment report along with a written commitment that the goods will not be used in ways that contribute to Japan's military buildup.

The ministry said it will apply stricter scrutiny to end users and end uses for firms on the caution list, and will deny export approvals when goods are judged likely to serve Japanese military purposes or contribute to military expansion.

The ministry said the measures are intended to safeguard national security and national interests and to fulfill international nonproliferation obligations. It also said the action aims to deter Japan's remilitarization and attempts at nuclear armament.

A ministry spokesperson, responding to reporters' questions, said Japan had not only failed to reflect on its past wrongs but had instead "accelerated its 'new militarism.'"