On Feb 24, 2026, China’s Ministry of Commerce (MOFCOM) announced new export restrictions targeting Japanese companies in the dual‑use technology sector. The measures include a full export ban on 20 firms and a watchlist of 20 additional entities requiring enhanced licensing and reporting.
MOFCOM Announcement 2026 No. 11 — Export Control List
The Ministry placed 20 Japanese companies and institutions on China’s export control list for dual‑use items—goods that have both civilian and potential military applications. This move is based on China’s Export Control Law and regulations governing dual‑use technologies.
Key Measures:
- Ban on Exports: Chinese exporters are prohibited from supplying dual‑use items to these firms. Foreign entities are also restricted from transferring Chinese-origin dual-use products. Ongoing activities must stop immediately.
- Exceptional Cases: Exports under specific circumstances require MOFCOM approval.
- Immediate Effect: Measures are effective immediately upon announcement.
Entities on the Control List:
| Sl. No. | Entity Name | Sector / Notes |
|---|---|---|
| 1 | Mitsubishi Shipbuilding Co., Ltd. | Aerospace / Shipbuilding |
| 2 | Mitsubishi Heavy Industries Aero Engines Co., Ltd. | Aerospace |
| 3 | Mitsubishi Heavy Industries Marine Machinery Co., Ltd. | Marine / Industrial |
| 4 | Mitsubishi Heavy Industries Engine & Turbocharger Co., Ltd. | Industrial / Engines |
| 5 | Mitsubishi Heavy Industries Maritime Systems Co., Ltd. | Defense / Marine |
| 6 | Kawasaki Heavy Industries Aerospace Systems Co., Ltd. | Aerospace / Defense |
| 7 | Kawasaki Heavy Industries Gifu Works | Industrial / Manufacturing |
| 8 | IHI Power Systems Co., Ltd. | Industrial / Aerospace |
| 9 | IHI Jet Service Co., Ltd. | Aerospace / Services |
| 10 | IHI Aerospace Engineering Co., Ltd. | Aerospace / Engineering |
| 11 | Fujitsu Defense and National Security Co., Ltd. | Defense / IT |
| 12 | National Defense Academy of Japan | Education / Research |
| 13 | Japan Aerospace Exploration Agency (JAXA) | Aerospace / Research |
| 14–20 | [Other MOFCOM official entities not publicly disclosed] | — |
MOFCOM Announcement 2026 No. 12 — Export Control Watchlist
On the same day, MOFCOM added another 20 Japanese firms to a watchlist due to unverifiable end-users and end-uses of dual-use items. Exports to these entities are allowed only under stricter scrutiny.
Watchlist Requirements:
- No General License: Simplified export licenses cannot be used.
- Individual License: Exporters must submit a risk assessment and written commitment ensuring items are not used to enhance military capabilities.
- Verification for Removal: Entities can apply for removal upon successful verification of end-use.
Watchlist Entities Include:
| Sl. No. | Entity Name | Sector / Notes |
|---|---|---|
| 1 | SUBARU Corporation | Automotive / Aerospace |
| 2 | FUJI Aerospace Technology Co., Ltd. | Aerospace |
| 3 | ENEOS Corporation | Energy / Petrochemicals |
| 4 | Yusoki Co., Ltd. | Industrial |
| 5 | ITOCHU Aviation Co., Ltd. | Aviation / Trading |
| 6 | Leda Group Holdings Co., Ltd. | Industrial / Trading |
| 7 | Institute of Science Tokyo | Research / Education |
| 8 | Mitsubishi Materials Corporation | Materials / Industrial |
| 9 | ASPP Co., Ltd. | Industrial |
| 10 | Yashima Denki Co., Ltd. | Electronics |
| 11 | Sumitomo Heavy Industries, Ltd. | Industrial / Defense |
| 12 | TDK Corporation | Electronics / Components |
| 13 | Mitsui Bussan Aerospace Co., Ltd. | Aerospace / Trading |
| 14 | Hino Motors, Ltd. | Automotive |
| 15 | Tokin Corporation | Electronics / Components |
| 16 | Nissin Electric Co., Ltd. | Industrial / Electronics |
| 17 | Sun Tectro Co., Ltd. | Industrial / Technology |
| 18 | Nitto Denko Corporation | Materials / Industrial |
| 19 | NOF Corporation | Chemicals / Materials |
| 20 | Nacalai Tesque, Inc. | Research / Industrial |
Rationale and Implications
MOFCOM cites national security and international non-proliferation obligations as the reason for the measures. Civilian trade is intended to continue, but dual-use exports are strictly controlled.
Strategic Implications:
- These measures reflect growing tensions between China and Japan over defense and security issues.
- Supply chains for aerospace, automotive, and high-tech materials may be affected, prompting Japanese firms to seek alternative sources.
- Japan has officially protested the move, citing risks to trade relations and international norms.
Compliance Guidance:
- Exporters should review supply chains for dual-use goods.
- Ensure licensing processes comply with MOFCOM requirements.
- Monitor updates for potential entity removals from the watchlist.
Summary Table of Differences
| Feature | Control List (Ann. 11) | Watchlist (Ann. 12) |
|---|---|---|
| Restriction Type | Full export ban | Enhanced scrutiny |
| Licensing | Ban; exceptional approval possible | Individual license and risk assessment |
| Scope | 20 entities | 20 entities |
| Immediate Effect | Yes | Yes |
| Removal Mechanism | None | Possible after verification |
Source:
The Ministry of Commerce announced No. 11
The Ministry of Commerce announced No. 12
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