china-blacklists-40-japanese-firms-over-military-ties

China has taken action against 40 Japanese companies and firms on Tuesday for their involvement with the military leadership of the country, officials said.

 

Chinese authorities on Tuesday cited national security concerns, several months after a diplomatic standoff between the two neighbouring countries ensued following the Japanese PM’s remarks over Taiwan. The standoff has crippled Japanese tourism, which was gaining momentum due to Chinese visitors.

 

Sanae Takaichi, in November, told the Japanese Parliament (the Diet) that a Chinese military action against Taiwan would trigger a military response from the island nation if it proved to be an existential threat. The remarks triggered fierce backlash from the Chinese government and public, who called her “snake head” for what they believed were unacceptable and unfounded claims.

 

China has targeted one of Japan’s leading companies, Mitsubishi, along with 20 other entities, including its space agency, which are helping develop Japan’s military capabilities. This would mean that China will restrict its supplies of the critical minerals necessary to operate and regulate the space industry, auto industry, and medical and engineering fields.

 

From Tuesday, Chinese exporters will not be able to supply any dual-use items to the listed Japanese entities and their overseas firms.

 

 

The ministry added a further 20 Japanese entities, including Subaru, to a "watch list" requiring stricter reviews of exported items that could be used for military purposes.

 

The Chinese commerce ministry, in a statement on Tuesday, said, “The above measures are aimed at curbing Japan’s ‘remilitarisation’ and nuclear ambitions and are completely legitimate, reasonable and lawful.”

 

Japanese trade bodies responded, saying they would take "appropriate measures" after analysing the impact of the new export curbs.

 

China has also imposed travel restrictions for its citizens willing to travel to Japan, which has plummeted Japan’s tourism industry.

 

"China's lawful listing actions target only a small number of Japanese entities, and the relevant measures target dual-use items and do not impact normal economic exchanges and trade between China and Japan,” the commerce ministry said.

 

The statement further said that “honest and law-abiding Japanese entities have nothing to worry about.”