China Bans Trade With 40 Japanese Companies Over Taiwan Dispute

Beijing has placed restrictions on 40 Japanese companies in response to tensions over Taiwan, with 20 firms facing complete bans on receiving dual-use goods from China. The action follows comments by Japan's Prime Minister suggesting potential military intervention if China attacks Taiwan.

BEIJING – Chinese officials announced Tuesday they are imposing trade restrictions on 40 Japanese corporations following escalating diplomatic tensions over Taiwan, the island territory that Beijing considers part of China.

The Commerce Ministry in China revealed that 20 Japanese firms will face complete prohibitions on receiving dual-use materials – products that serve both civilian and military functions – from Chinese suppliers.

Among the companies facing total bans are several arms of Mitsubishi Heavy Industries that focus on shipbuilding, aircraft engine manufacturing, and maritime equipment production. Other affected businesses include branches of Kawasaki Heavy Industries and Fujitsu.

Chinese authorities also prohibited foreign entities and individuals from supplying China-sourced dual-use materials to these 20 corporations.

“All ongoing related activities must cease immediately,” the ministry declared in its announcement.

An additional 20 Japanese businesses were placed on a monitoring list requiring Chinese exporters to obtain special export permits, complete risk evaluations, and provide written guarantees that dual-use materials won’t reach Japan’s armed forces.

This second group includes Subaru Corporation, Mitsubishi Materials Corporation, and the Institute of Science Tokyo.

China’s Commerce Ministry defended the restrictions as efforts to prevent Japan’s military expansion and nuclear development, calling them “entirely legitimate, reasonable, and legal.”

Officials emphasized the measures “are only aimed at a small number of Japanese entities, and the relevant measures only target dual-use items,” adding “They will not affect normal economic and trade exchanges between China and Japan, and honest and law-abiding Japanese entities have absolutely nothing to worry about.”

The restrictions stem from ongoing friction over statements made by Japanese Prime Minister Sanae Takaichi, who suggested in November that Japan might take military action if China launches an assault on Taiwan.

China views Taiwan as a rebellious territory that must eventually reunite with the mainland, using military force if needed, and strongly objects to foreign government statements supporting Taiwan’s independence.

Takaichi’s political party won decisively in recent parliamentary voting, positioning her to pursue more conservative approaches to national security, immigration, and additional policy areas.