
China Imposes Dual-Use Export Controls on 40 Japanese Entities
On June 29, 2026, China’s Ministry of Commerce (MOFCOM) announced export controls on 40 Japanese entities, dividing them into a control list of 20 and a watch list of 20. The measures target dual-use items—goods that can serve both civilian and military purposes—and impose immediate restrictions on listed organizations.
Control List Imposes Immediate Export Prohibitions
The control list prohibits the export of dual-use items to the 20 designated entities and requires that any ongoing activities cease immediately. This restriction applies to both Chinese and foreign exporters supplying China-origin dual-use items to the listed organizations.[source]
MOFCOM stated that exports required under special circumstances must be submitted to the ministry for approval. The control list includes multiple Mitsubishi-affiliated entities.[source]
Watch List Introduces Stringent Licensing Requirements
For the 20 entities on the watch list, exporters must apply for special licenses, submit risk assessment reports, and provide written pledges that dual-use items will not be used for military purposes.[source]
Watch-list entities face stricter end-user and end-use review by MOFCOM. However, an entity may apply for removal from the watch list after cooperating with end-user and end-use verification.[source]
Dual-Use Items at the Center of Controls
Dual-use items, which can be used for both civilian and military purposes, are the focus of these export controls.[source]
The controls apply to China-origin dual-use items, meaning that any exporter—Chinese or foreign—supplying such goods to the listed Japanese entities must comply with the new rules.[source]
Entities Affected Include Major Industrial Players
The control list features multiple Mitsubishi-affiliated entities. Additionally, AP identified Mitsui E&S as a maker of engines and other ship equipment.[source]
For more on trade and tariff developments, visit our China Trade & Tariffs section.
Sources
- MOFCOM Announcement on Control List
- MOFCOM Announcement on Watch List
- AP News Report on Export Controls