China blacklists 20 Japanese firms over dual-use goods

China's Ministry of Commerce has placed 20 Japanese companies on an export control list, effectively barring Chinese businesses from supplying them with goods or services without prior authorization. This action, announced on Monday, June 29, 2026, targets entities involved in the production or association with "dual-use" items – materials that can serve both civilian and military applications.

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China's decision to include these entities on the list was made in accordance with the law and only targets a small number of Japanese entities. The related measures only target dual-use goods.

According to Chinese Foreign Ministry spokesperson Guo Jiakun, the decision is "fully justifiable, legitimate, and lawful," aimed at countering Japan's "reckless neo-militarism." He expressed hope that these restrictions would prompt Japan to abandon its current path, reflect on its actions, and return to a "correct" trajectory. Guo Jiakun assured that the measures would not impede normal business exchanges between China and Japan, provided Japanese entities operate in good faith and adhere to the law.

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China's actions are fully justifiable, legitimate, and lawful, with the aim of curbing Japan's reckless neo-militarism.

The announcement, detailed in Ministry of Commerce Announcement No. 28 of 2026, specifies that the inclusion on the "Supervision List" stems from the inability to verify the end-users and end-uses of goods supplied to these Japanese institutions. Chinese businesses wishing to export dual-use items to these listed entities must submit a risk assessment report and provide a written commitment that the goods will not contribute to enhancing Japan's military capabilities.

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Japanese entities do not need to worry as long as they operate in good faith and comply with the law.

This move signifies China's intent to exert control over the flow of sensitive technologies and materials, particularly in the context of perceived regional military buildups. By restricting access to essential goods and services, China aims to influence the operational capacity and strategic direction of these Japanese companies, aligning with its broader geopolitical objectives.

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Exporters of dual-use goods to these entities are not permitted to apply for a general permit or obtain export documents through the registration and information filling mechanism.