China Slaps Export Controls On Japanese Firms Over Military Concerns

China imposed new export controls on 40 Japanese companies and institutions on Tuesday, escalating trade tensions between the two countries, according to China’s Ministry of Commerce.

The measures target firms linked to autos, electronics, shipping, and defense, including Subaru, TDK, Eneos, and affiliates of major trading houses. Companies on a new “watch list” must submit risk assessments and pledge that Chinese exports will not be used to strengthen Japan’s military.

BREAKING: The Chinese government imposed export controls on 40 Japanese companies and other institutions with immediate effect, escalating trade tensions between the two neighboring countries.https://t.co/pQ2gMjwEW1 pic.twitter.com/Hcp4PKwTgo

— Nikkei Asia (@NikkeiAsia) February 24, 2026

Another group, including defense-related institutions, faces an outright ban on dual-use exports.

Beijing said the move is aimed at curbing Japan’s “remilitarization” and claimed it would not disrupt normal trade. Tokyo rejected the decision. Deputy Chief Cabinet Secretary Kei Sato called the controls unacceptable and deeply regrettable.

Relations have worsened amid disputes over Taiwan and security policy. Japanese stocks tied to defense and heavy industry fell following the announcement.

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