The Chinese mainland's Ministry of Commerce announced sweeping export controls targeting 20 Japanese entities on February 24, 2026, citing national security priorities and international non-proliferation commitments. The measures prohibit all export operators from transferring dual-use items—products with both civilian and military applications—to listed companies, including major players like Subaru Corporation, Mitsubishi Materials Corporation, and Sumitomo Heavy Industries.
Overseas organizations are also barred from re-exporting Chinese-origin dual-use items to these entities, with immediate suspension of ongoing transactions. A separate watch list flags 20 additional Japanese firms due to unverifiable end-use risks, signaling heightened scrutiny of cross-border technology flows.
The move comes amid growing global attention to supply chain security, particularly in advanced manufacturing and aerospace sectors where several listed companies operate. Analysts suggest this could reshape trade dynamics between Asia's two largest economies, though Beijing emphasized the measures align with standard international security frameworks.
