China on Monday added 20 Japanese entities, including the National Institute for defence studies, to its export control list, barring the export of Chinese dual-use items to the organisations in what appears to be the latest expansion of Beijing’s technology and national security restrictions.The move comes just a week after China imposed similar restrictions on 10 US entities, including rare earth producers MP Materials and USA Rare Earth, in retaliation for Washington’s decision to place several Chinese companies under export restrictions earlier this month.Announcing the latest measures, China’s ministry of commerce said the decision was aimed at protecting national security and fulfilling international non-proliferation commitments.“For the purpose of safeguarding national security and interests and fulfilling international obligations including non-proliferation, it has been decided to include 20 Japanese entities… that have participated in enhancing Japan’s military capabilities on the export control list,” the ministry said in a statement.According to the ministry, organisations and individuals are prohibited from transferring or supplying Chinese dual-use items to the listed entities. Dual-use goods are products and technologies that have both civilian and military applications.The National Institute for defence studies is among the 20 organisations named in the latest round of restrictions.The announcement marks another step in Beijing’s use of export controls as geopolitical tensions with the United States and its allies continue to intensify.Last week, China added MP Materials, USA Rare Earth and eight other US entities to the same export control list after Washington imposed restrictions on several Chinese companies.The US-listed entities included Aveox, a manufacturer of motors used in mission-critical applications. The measures effectively halted Chinese exports of dual-use items to the companies.China’s commerce ministry had then described the restrictions as a response to the “U.S. government’s malicious practice” and said they were intended to safeguard national security and fulfil international obligations such as non-proliferation.“Organisations and individuals in any country or region are prohibited from transferring or supplying dual-use items originating in China to those entities,” the ministry said, adding that export activities should “be stopped immediately.”The move effectively amounted to a complete ban on exports of dual-use products to the listed US firms, tightening previous rules that required exporters to obtain licences.However, analysts viewed the restrictions on the US companies as largely symbolic because many of the affected firms have limited commercial exposure to China.“Most of the companies are US defence industry players or they have close connections with the U.S. government… Those companies are not going to do business in China, so the impact will be quite symbolic,” said George Chen, partner for Greater China at geopolitical advisory firm The Asia Group.“Beijing’s move today is a proportional response to the department of war’s 1260H list.”In a parallel measure announced last week, China’s finance ministry also imposed procurement restrictions on 46 US companies, barring Chinese buyers from purchasing their products while allowing US-funded enterprises operating in China to continue doing so.The latest action against Japanese entities suggests Beijing is broadening its use of export controls beyond its trade dispute with Washington, as concerns over military technology and strategic supply chains increasingly shape its trade policy.
