China Blacklists 4 Japanese Defense Institutes, Tightens Curbs on 40 More Over Taiwan Comments
Updated
Updated · CNBC · Jun 29
China Blacklists 4 Japanese Defense Institutes, Tightens Curbs on 40 More Over Taiwan Comments
3 articles · Updated · CNBC · Jun 29
Summary
Four Japanese government defense research institutes were added to China’s export-control list on Monday, immediately banning transfers of Chinese-origin dual-use goods and halting any ongoing shipments.
Another 20 Japanese entities were put under enhanced licensing scrutiny, and Beijing said exports tied to military users, military applications or uses that could strengthen Japan’s defense capabilities would not be approved.
The latest move widens a campaign launched in January and expanded in February, when China also restricted rare earths, magnets and other critical minerals and listed firms including Mitsubishi Heavy, IHI, Kawasaki, Subaru and TDK units.
Beijing linked the escalation to Prime Minister Sanae Takaichi’s Taiwan remarks and what it called Japan’s drift toward “new-style militarism,” while saying normal trade with law-abiding firms would continue.
Japan remains exposed despite years of diversification: Daiwa estimated a one-year cutoff of Chinese rare earths and related components could shave 1.3% off GDP, or about 7 trillion yen.