China expands curbs over Japan's military buildup

China has broadened its export restrictions on dual-use goods by imposing new controls on 40 Japanese organizations and companies, citing their alleged role in Japan's military buildup. The latest action suggests Beijing is pressing ahead with the sanctions campaign it launched after Japanese Prime Minister Sanae Takaichi's remarks last November about possible intervention in a Taiwan contingency.

China's Ministry of Commerce said Monday it had added 20 Japanese organizations and companies to its export control list because of their involvement in Japan's military expansion. Those designated include government-affiliated research institutes such as the Defense Research Institute, Ground Equipment Research Institute, Naval Equipment Research Institute and Aviation Equipment Research Institute, as well as private-sector firms including Nikko Toki, Nikko YPK Trading, Mitsubishi Electric Defense & Space Technologies and Mitsubishi Heavy Industries Logitec.

Entities on the export control list are prohibited from receiving dual-use goods from China. Companies and individuals in third countries are likewise barred from supplying them with Chinese-origin dual-use products. Any transactions already underway must be terminated immediately unless prior approval is granted by China's Ministry of Commerce.

The ministry also placed 20 additional Japanese companies on a watch list, saying it could not verify their end users or the intended use of exported goods. The companies include Mitsui E&S, Mitsui & Co. Aerospace Maintenance Center, Fujitsu Network Solutions and Komatsu NTC.

While exports to those companies are not prohibited, exporters applying for licenses must submit a risk assessment report and provide written assurances that the goods will not be used to support Japan's military expansion.

China has been steadily tightening controls on dual-use exports to Japan since January. In February, Beijing imposed similar restrictions on another 40 Japanese organizations and companies. At that time, 20 entities, including Mitsubishi Shipbuilding, were added to the export control list, while another 20 companies, including Subaru, were placed on the watch list.

In a statement issued Monday, China's Ministry of Commerce accused Japan of actively pursuing a new form of militarism and accelerating its rearmament instead of reflecting on its past mistakes.


Chul-Jung Kim tnf@donga.com