BEIJING - China's Commerce Ministry said Monday it has added 20 Japanese entities including the National Institute for Defense Studies and subsidiaries of Mitsubishi Electric Corp. to its export control list for dual-use items, amid a bilateral diplomatic row.
The latest step, which took effect immediately, follows Beijing's ban introduced in late February on exports of items that can be used for both civilian and military applications to 20 Japanese defense-related entities. The items include rare earths essential for manufacturing high-tech products including weapons.
The ministry separately placed another 20 Japanese entities, including Mitsui E&S Co. and Japan Nuclear Fuel Ltd., on an export watch list for increased scrutiny, saying end users and end-use purposes of shipped dual-use items cannot be verified. The watch list now also covers 40 Japanese firms and institutions in total.
Beijing says the measures are aimed at safeguarding national security and interests and fulfilling international obligations such as nonproliferation.
In Tokyo, Chief Cabinet Secretary Minoru Kihara urged China to revoke its latest measure, saying that the government "strongly protested" to Beijing over the "totally unacceptable and extremely regrettable" move.
Japan will take the "necessary actions," while assessing the details and potential impact of China's move, the top government spokesman told a press conference.
Four subsidiaries of Mitsubishi Electric were newly put on the export control list, and a company official said it will examine any possible impact on its businesses.
Employees of some Japanese companies added to the list were bewildered as they hardly have any major transactions with China or do not engage mainly in defense-related businesses.
The expansion of the watch list was announced shortly after the detention of two Japanese workers at Fuji Electric Co. came to light.
They were detained separately in May in the northeastern port city of Dalian for allegedly trying to ship abroad processed rare-earth items amid China's tighter export controls on such products, sources familiar with the matter said.
In a statement, the ministry said the steps introduced in February were aimed at curbing Japan's attempts at "remilitarization" and the acquisition of nuclear capabilities.
"Regrettably, the Japanese side has shown no signs of repentance. Instead, it has gone further down the wrong path, intensifying its push for 'neo-militarism,'" the statement added.
Japanese companies face difficulties in procuring rare earths from China as Beijing has been slow to issue the export licenses, affecting some items used solely for civilian applications. Exports of rare-earth magnets to Japan have dropped, indicating the effects of the tighter controls.
Sino-Japanese ties have worsened following Prime Minister Sanae Takaichi's parliamentary comments last November that suggested an attack by China on Taiwan, a self-ruled democratic island Beijing claims, could prompt a response by the Japan Self-Defense Forces in support of the United States.
China has been stepping up criticism of Takaichi's security policies, claiming her comments "openly challenge the postwar international order."
