Beijing imposes export bans and watchlists on Japanese entities to curb what it calls Japan’s ‘remilitarisation’, sparking mixed market reactions in Tokyo.

BEIJING: China has prohibited the export of dual-use items to 20 Japanese entities it accuses of supplying Japan’s military.

The commerce ministry announced the controls on Tuesday, stating the measure targets units of major industrial conglomerates like Mitsubishi Heavy Industries.

It said the restrictions aim to curb Japan’s “remilitarisation and nuclear ambitions”, also banning overseas parties from transferring Chinese-origin dual-use items to the listed firms.

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The ministry added that firms could apply to sell to the listed entities under unspecified “special circumstances” requiring export.

It assured that entities operating “in good faith” have no reason to worry, claiming the measures will not affect normal bilateral trade.

A separate watchlist of 20 more Japanese entities, including Subaru Corp and Mitsubishi Materials Corp, was also established.

Companies exporting to watchlisted firms must apply for individual licenses and provide written commitments their items won’t enhance Japan’s military capabilities.

None of the affected Japanese companies contacted by Reuters had an immediate comment on the new trade measures.

Market reaction in Tokyo was mixed, with Subaru shares falling 3.7% while Mitsubishi Materials shares rose 3%.

Mitsubishi Heavy shares were down 3.5%.

 The Sun Malaysia