China adds Japanese entities to export control list, turning up heat on Tokyo
Title: China adds Japanese entities to export control list, turning up heat on Tokyo
Subtitle: Beijing has also added 20 Japanese firms and institutions to a watch list for the export of goods with potential military applications
Context:
* China's Commerce Ministry banned dual-use exports to 20 Japanese companies and added 20 more to a watch list, effective immediately * The measures target critical minerals, rare earth magnets, advanced manufacturing equipment, and battery materials * Dual use exports to these 20 Japanese companies and subsidiaries on the \[Banned List\] are banned and cannot be contested. * Whereas those 20 companies on the \[Watch List\] must pledge that materials won't be used to enhance Japan's military capabilities. * China's recent move distinguishes between defense manufacturers and civilian businesses. In the case of Mitsubishi: * Mitsubishi subsidiaries such as Mitsubishi Heavy Industries Aerospace, with very strong military ties have been banned * Whereas Mitsubishi subsidiaries without strong military ties, like Mitsubishi Materials, are only placed on the watchlist. These are mainly companies with civilian and industrial business but only a few defense contracts. * Civilian companies and subsidiaries like Mitsubishi Motors Corporation for example are excluded from both lists. * However it is likely that if Mitsubishi Motors or other civilian subsidiaries transfers banned materials to their military companies, the entire group structure will be subjected to bans and potentially fines for breaking Chinese export laws. * In general, the 20 banned companies and subsidiaries deal mainly in warship, submarine, military aircraft, defense, rocket, aerospace, radar etc with very little or zero civilian applications. #local