BUSINESS

China Imposes Export Controls on 20 Japanese Defense Firms

Published: Feb. 24, 2026 11:38 p.m. GMT+8

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Exterior view of the headquarters building of Mitsubishi Heavy Industries in Tokyo, Feb. 24, 2026. Photo: VCG

China has imposed export controls on 20 Japanese companies, including major defense contractors Mitsubishi Heavy Industries Ltd. and IHI Corp., banning the sale of dual-use items to the firms.

The move, announced Tuesday by the Ministry of Commerce, also places another 20 Japanese equipment and materials companies on a “watch list,” subjecting their purchases of Chinese dual-use goods to stricter end-user and end-use reviews.

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China imposed export controls on 20 major Japanese companies, including Mitsubishi and IHI, banning the sale of dual-use items to strengthen Japan’s military.
Another 20 Japanese firms are on a watch list facing tighter licensing and compliance checks for Chinese dual-use goods.
Japan remains reliant on Chinese rare earths (58% in 2024), with risks of supply disruption, while both governments dispute the legitimacy of the controls.

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Who’s Who

Mitsubishi Heavy Industries Ltd.: Mitsubishi Heavy Industries Ltd. (MHI) is one of 20 Japanese companies subjected to export controls by China, banning the sale of dual-use items. MHI, a prominent defense contractor and long-standing supplier to Japan's Defense Ministry, saw five of its subsidiaries, including Mitsubishi Shipbuilding and Mitsubishi Heavy Industries Aero Engines, also listed. In October 2025, MHI signed significant contracts for submarine-launched and upgraded ship-to-ship missile production.

IHI Corp.: IHI Corp. is a major Japanese defense contractor, and six of its units have been placed under China's export controls. It is a key builder of military jet engines, having a 60%-70% share of Japan's civil and military aircraft engine market. IHI is also the engine contractor for Japan's next-generation fighter jet program.

Kawasaki Heavy Industries: Kawasaki Heavy Industries is one of 20 Japanese companies subjected to export controls by China. These controls prohibit the sale of dual-use items to the company due to its perceived involvement in bolstering Japan's military capabilities. Specifically, Kawasaki Heavy Industries Aerospace Systems and Kawasaki Gifu Engineering are also named in the sanctions.

NEC Corp.: NEC Corp. (日本电气) is a Japanese company that has been placed under export controls by China. This measure, announced by China's Ministry of Commerce, restricts the sale of dual-use items to NEC Corp. and other listed entities. China justifies these controls as a response to Japan's "remilitarization" and nuclear ambitions.

Mitsubishi Shipbuilding: Mitsubishi Shipbuilding is one of the five Mitsubishi subsidiaries specifically named in China's export controls. These controls ban the sale of dual-use items to the company, which is a key supplier to Japan's Defense Ministry. Notably, Mitsubishi Shipbuilding was involved in contracts for the production of submarine-launched and upgraded ship-to-ship missiles.

Mitsubishi Heavy Industries Aero Engines: Mitsubishi Heavy Industries Aero Engines is one of five Mitsubishi subsidiaries targeted by China's export controls. These controls ban the sale of dual-use items to the company. The Chinese Ministry of Commerce cited the company's presumed involvement in bolstering Japan's military capabilities as the reason for the measures.

Kawasaki Heavy Industries Aerospace Systems: Kawasaki Heavy Industries Aerospace Systems is among the 20 Japanese companies subjected to export controls by China. These controls prohibit the sale of dual-use items to the firm, which is deemed to be involved in bolstering Japan's military capabilities. The company is a subsidiary of Kawasaki Heavy Industries.

Kawasaki Gifu Engineering: Kawasaki Gifu Engineering is one of the 20 Japanese companies subjected to export controls by China. This measure prohibits the sale of dual-use items to the firm, which has been identified as a contributor to Japan's military capabilities. The controls were imposed by China's Ministry of Commerce due to concerns about Japan's "remilitarization" and nuclear ambitions.

Fujitsu Defense & National Security: Fujitsu Defense & National Security is one of the Japanese companies specified in China's export controls. These controls ban the sale of dual-use items to such entities. Measures target companies deemed to be involved in bolstering Japan’s military capabilities.

AI generated, for reference only

What Happened When

October 2024：: China's State Council published regulations on dual-use export controls.

December 2024：: Regulations on dual-use export controls took effect in China.

October 2025：: Mitsubishi signed contracts for large-scale production of submarine-launched missiles and upgraded Type 12 ship-to-ship missiles for Japan’s Defense Ministry.