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China Lists 20 Japanese Entities on Watchlist for Military Ties

According to the latest announcement on the Ministry of Commerce website, in accordance with laws and regulations such as the 'Export Control Law of the People's Republic of China' and the 'Regulations on Export Control of Dual-Use Items of the People's Republic of China', it has been decided to list 20 Japanese entities, including Mitsui & Co., Ltd., on a watchlist. These entities cannot be verified regarding their final users and final uses of dual-use items.

Export operators who export dual-use items to the aforementioned entities shall not apply for general licenses or obtain export certificates through registered information submission. When applying for individual licenses, they must submit a risk assessment report on entities listed in the concern list, and provide a written commitment that the dual-use items will not be used for any purpose that contributes to enhancing Japan's military power. The license review period is not subject to the limitation set by Paragraph 1, Article 17 of the Regulations on the Export Control of Dual-Use Items of the People's Republic of China.

The Ministry of Commerce will impose stricter scrutiny on the export of dual-use items by entities on the list of concerns. Exports related to Japanese military users, military purposes, and any other uses that contribute to enhancing Japan's military strength will not be approved.

According to Article 26 of the "Regulations on the Export Control of Dual-use Items of the People's Republic of China," entities listed on the watchlist may apply to be removed from the list if they fulfill their obligations regarding joint inspections. After verification by the Ministry of Commerce, such entities can be removed from the watchlist.

This announcement takes effect from the date of publication.

When responding to the considerations behind this list, the Ministry of Commerce stated that on February 24, 2026, China included Mitsubishi Shipbuilding Corporation and 20 other Japanese entities in the export control list, and Subaru Corporation and 20 other Japanese entities in the watchlist. The purpose was to prevent Japan from “re-militarizing” and pursuing nuclear ambitions. Unfortunately, for some time, Japan has not shown any desire to correct its actions. Instead, it has continued to take steps towards “new types of militarism,” accelerating re-militarization, deploying offensive weapons, and launching offensive missiles overseas. In light of this, in accordance with relevant laws and regulations such as the “Export Control Law of the People’s Republic of China” and the “Regulations on the Export Control of Dual-use Items of the People’s Republic of China,” China has decided to…

Firstly, 20 Japanese entities involved in enhancing Japan’s military strength, including the Defense Research Institute, have been listed on a control list. The measures following the listing mainly involve two aspects: one is a ban on export operators exporting dual-use items to the aforementioned entities; the other is a ban on foreign organizations and individuals transferring or providing dual-use items originating from the People’s Republic of China to the aforementioned entities. The activities related to this issue must be immediately stopped.

Secondly, 20 Japanese entities including Mitsui E&S Corporation have been listed on a watchlist. After being listed, export operators who export dual-use items to these entities are not allowed to apply for general licenses or obtain export certificates through registration and submission of information. When applying for individual licenses, they must submit a risk assessment report on the entities listed on the watchlist, and provide a written commitment that the dual-use items will not be used for any purpose that contributes to enhancing Japan’s military power. The licensing review period is not subject to the time limit stipulated in Article 17, Paragraph 1 of the “Regulations on the Export Control of Dual-Use Items of the People’s Republic of China.” The Ministry of Commerce will impose stricter reviews on the export of dual-use items by entities on the watchlist. Exports involving Japanese military users, military purposes, and any other purposes that contribute to enhancing Japan’s military power will not be approved. Entities listed on the watchlist can be removed from the list if they comply with the verification obligations stipulated in Article 26 of the “Regulations on the Export Control of Dual-Use Items of the People’s Republic of China.” After verification by the Ministry of Commerce, such entities can be removed from the watchlist.

China's actions are entirely legitimate, reasonable, and legal. The aim is to firmly curb Japan's "new type of militarism" and reckless moves. We hope that Japan will realize its mistake, change its wrongful actions, truly reflect on the matter, and return to the correct path. China's lawful measures are targeted only at a few Japanese entities, and these measures concern dual-use goods. They do not affect normal economic and trade relations between China and Japan. Japanese entities that abide by the law need not worry at all.

Attachment: Priority List (June 29, 2026)

Ministry of Commerce

June 29, 2026

Contribution List

(June 29, 2026)

Mitsui E&S Co., Ltd.

Address: 6-4-5 Tsuji, Chuo-ku, Tokyo, Japan

Postal Code: 104-0045

Mitsui Bussan Aerospace Co., Ltd. Maintenance Center

Address: 22nd Floor, Tetsu Steel Building, 1-8 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan

Postal Code: 100-0005

3. Terra Drone Corporation

Address: 2-17 Minami Platform-cho, Shibuya-ku, Tokyo, Japan. A-PLACE, 4th Floor, Shibuya Minami Platform

Postal Code: 150-0036

ACSL Corporation (ACSL Ltd.)

Address: 2nd Floor, Hulic Kaisu Marina Building, 3-6-4 Minamimatsu, Edogawa-ku, Tokyo, Japan

Postal Code: 134-0086

5. Mitsubishi Nuclear Fuel Co., Ltd.

Address: 622-1, Funakoshi River, Ookishikawa Village, Nakaoka District, Ibaraki Prefecture, Japan

Postal Code: 319-1197

6. Japan Nuclear Fuel Limited

Address: 4-18, Oshirochoji, Rokusuo-mura, Kamikawa District, Aomori Prefecture, Japan

Postal Code: 039-3212

7. Fujitsu Network Solutions Limited

Address: 1-5 Omi-cho, Kōkaishi-ku, Kawasaki-shi, Kanagawa-ken, Japan. JR Kawasaki Tower

Postal Code: 212-0014

8. Hitachi Advanced Systems Corporation

Address: 292 Yoshida-cho, Kojiku-ku, Yokohama City, Kanagawa Prefecture, Japan

Postal Code: 244-0817

9. Komatsu Industries Corporation

Address: 1-1, Shin-machi, Ono-cho, Kanazawa City, Ishikawa Prefecture, Japan

Postal Code: 920-0225

10. Komatsu NTC Ltd.

Address: 641 Nonzuki, Minami-Tsukigai, Toyama Prefecture, Japan

Postal Code: 939-1502

11. OKI Electric Industry Co., Ltd.

Address: 1-7-12 Gotemba, Minato Ward, Tokyo, Japan

Postal Code: 105-8460

12. OKI Com-Echoes Co., Ltd.

Address: 681-1, Kiyofuji, Narumi City, Shizuoka Prefecture, Japan

Postal Code: 410-0873

13. OKI Circuit Technology Co., Ltd.

Address: 68-15, Hōdai 1-chome, Tsurumi City, Yamagata Prefecture, Japan

Postal Code: 997-0011

14. OKI Nextech Co., Ltd.

Address: 1 Cho-Uchi, Sōzetsu City, Saitama Prefecture, Japan

Postal Code: 359-1153

15. OKI Engineering Co., Ltd.

Address: 3-20-16 Kogen-dai, Tsubaki-tai, Tama-ku, Tokyo, Japan

Postal Code: 179-0084

16. YDK Technologies Co., Ltd.

Address: 5-23-13 Chitogue, Shibuya-ku, Tokyo, Japan; South Shinjuku JEBL

Postal Code: 151-0051

17. Nihon Denji Sokki Co., Ltd. (Japan Electromagnetic Measuring Devices Co., Ltd.)

Address: 8-59-2 Sakawa-cho, Togawa City, Tokyo, Japan

Postal Code: 190-0031

18. Howa Machinery, Ltd.

Address: 1-1900 Suke, Seki-shi, Aichi Prefecture, Japan

Postal Code: 452-8601

19. Hosoya Pyro-Engineering Co., Ltd.

Address: 1847 Sugiaki, Akari-no-cho, Urayasu-shi, Tokyo, Japan

Postal Code: 197-0801

20. Fujikura Parachute Co., Ltd.

Address: 2-4-46 Ebara, Shinagawa-ku, Tokyo, Japan

Postal Code: 142-0063