Tensions between China and Japan have reached a new, higher level. On 24 February 2026, the Chinese Ministry of Commerce (MOFCOM) announced the introduction of precise targeted economical sanctions, which included a full of 40 nipponese entities. This decision, which is simply a direct consequence to Tokyo's rising defence spending and its assertive abroad policy, is another example of Beijing's usage of its economical power as a tool in geopolitical competition.
Black list and reflection list: 2 Restrictions
Chinese sanctions were divided into 2 categories, indicating their careful calibration. The first alleged "blacklist" included 20 entities identified by Beijing as straight active in strengthening Japan's military potential. This list includes key companies from the arms and shipbuilding sectors, specified as Mitsubishi Shipbuilding and many branches of Mitsubishi dense Industries, as well as companies from IHI Corporation. Importantly, the sanctions besides included investigation institutions and government agencies, including the nipponese Aerocosmic Exploration Agency (JAXA) and the National Defence Academy. They are subject to a complete ban on exports of dual-use items from China, which can be utilized for both civilian and military purposes. The ban besides concerns the transfer of these goods by 3rd parties and all ongoing transactions were to be immediately suspended.
The second group is simply a "observatory list", with another 20 nipponese companies including automotive giants specified as Subaru corp and natural materials companies specified as NEOS corp and Mitsubishi Materials. These companies were not subject to a complete ban but were subject to enhanced verification procedures. Each export of dual-use items to these entities now requires an individual licence from MOFCOM and a written commitment that the goods will not be utilized for military purposes. This is simply a clear informing signal and a force tool that can importantly impede and slow down their activities.
Geopolitical Background: Answer to Japan's "remilitarisation"
Beijing does not hide the motivation behind its decision. MOFCOM’s spokesperson openly stated that the intent of the sanctions is to "stop nipponese remilitarisation and atomic pursuits".
This is simply a direct reaction to the government policy of Prime Minister Sanae Takaichi, who announced a doubling of defence spending to 2% of GDP by the end of March 2026, which would make Japan 1 of the largest military budget countries in the world.
An additional origin in the situation was Prime Minister Takaichi's statements suggesting Japan's intervention in the event of a Chinese invasion of Taiwan. The restrictions introduced, including uncommon earth metals crucial for modern technologies, are to show Tokyo that its actions will not stay unanswered.
Tokyo reaction and what's next?
The government in Tokyo reacted with an immediate and sharp protest, identifying Chinese actions as “totally unacceptable” and “deeply regrettable”. Japan has requested the withdrawal of sanctions, arguing that they are contrary to global trade practices. On the another hand, the Chinese side reassures that the restrictions are precisely targeted and will not affect average trade, and ‘fair and law-abiding nipponese operators have no origin for concern’. Despite these assurances, imposing sanctions on specified crucial companies is simply a clear signal of escalation and opens a new, uncertain chapter in Chinese-Japanese relations, in which trade becomes a weapon in the fight for influence in the Asia-Pacific region.
Source:
- https://www.mofcom.gov.cn/zgk/zcfb/art/2026/art_8990fedae8fa462eb02cc9bae5034e91.html
- https://www.news.cn/world/20260224/e024d6e8e4ec18bcd2a46cb558179/c.html
- https://www.cnfin.com/yw-lb/detail/20260224/4380781_1.html
Author: 梁安基 Andrzej Z. Liang, 上海 Shanghai, 中国 China
Email: [email protected]
Editorial: Leszek B.
Email: [email protected]
