Why Did the Ministry of Commerce Tighten Controls on Japanese Entities Again Four Months Later? Expert Analysis
Source: CCTV News Client | Release Date: June 30, 2026
On June 29, the Ministry of Commerce issued an announcement, deciding to add 20 Japanese entities including the National Institute for Defense Studies to the control list. Key measures applicable to listed entities are as follows: Export operators are prohibited from exporting dual-use items to the abovementioned entities; overseas organizations and individuals are banned from transferring or supplying dual-use items originating from the People's Republic of China to these entities. All ongoing relevant activities must cease immediately. Separately, the announcement also designated another 20 Japanese entities to the watchlist.
A spokesperson for the Ministry of Commerce stated that China’s move is fully justified, reasonable and lawful, designed to resolutely curb reckless moves toward a "new form of militarism" in Japan. China’s law-based listing targets only a small number of Japanese entities, and relevant restrictions apply solely to dual-use items. Normal economic and trade exchanges between China and Japan will remain unaffected, and law-abiding Japanese entities with sound credibility have no grounds for concern.
Which Entities Are Included?
The 20 Japanese entities on the control list cover defense policy research, military industry, aviation and other sectors, including the National Institute for Defense Studies, Ground Systems Research Center, Naval Vessel Equipment Research Institute, and Aeronautical Equipment Research Institute. All of them are bodies involved in bolstering Japan’s military capabilities.
The 20 Japanese entities placed on the watchlist comprise Mitsui & Co. Aerospace Maintenance Center, Terra Drone Corporation, Mitsubishi Nuclear Fuel Co., Ltd., and others. For these entities, the end-users and end-uses of dual-use items cannot be verified.
What Is the Difference Between the Control List and the Watchlist?
Wan Zhe, Professor at Beijing Normal University, offered an interpretation:
- Control List: Entities on this list are confirmed to pose verified threats to national security, making them core targets of export control. All transactions with them are fully prohibited, with no routine customs clearance channels available.
- Watchlist: Entities here carry suspected potential risks, with uncertainties that dual-use items may be diverted for military applications, yet they have not been confirmed to cause definite harm to national security. Instead of an outright ban, the policy imposes rigorous approval restrictions that substantially raise compliance costs, serving as a warning-based control measure.
Why Tighten Restrictions Again After Four Months?
According to Wan Zhe’s analysis, the immediate trigger lies in Japan’s disregard of prior warnings and continuous escalation of military expansion. In recent years, Japan’s pursuit of long-range strike capabilities, sharp hikes in defense budgets, and attempts to break away from the principle of exclusive defense have sparked deep vigilance among neighboring countries. This round of tightened export controls constitutes a direct response and countermeasure against Japan’s erroneous actions.
Listing the 20 entities on the control list represents the harshest component of the new measures, indicating China holds conclusive evidence that these bodies are directly engaged in activities to strengthen Japan’s military power. The additional 20 entities added to the watchlist fulfill statutory obligations under the Export Control Law, aiming to close regulatory loopholes and prevent Chinese products and technologies from flowing into military sectors via third parties.
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