China targets Japanese companies over 'remilitarization'

Deutsche Welle

February 24, 2026

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China has taken a significant step in escalating its tensions with Japan by restricting exports of dual-use goods to 40 Japanese companies, including major entities like Mitsubishi and the Japanese space agency. This move comes amid growing concerns over Japan's military expansion, particularly following Prime Minister Sanae Takaichi's November remarks about potentially using military force against Taiwan. China views this as a direct threat to its national security, given its longstanding One-China policy regarding Taiwan. The restrictions, announced by China's Commerce Ministry, aim to curb what Beijing perceives as Japan's "remilitarization" and nuclear ambitions. While a broader ban on dual-use exports was already in place since January, Tuesday's measures specifically target key industries, including automaker Subaru. This has led to immediate financial repercussions, with shares of affected companies dropping on the Tokyo Stock Exchange and the yen weakening against the US dollar. The targeted restrictions reflect China's increasingly assertive approach to countering perceived threats from Japan. This follows earlier symbolic actions, such as banning seafood exports and recalling pandas from a Tokyo zoo, which underscored China's willingness to use economic and diplomatic tools to influence policy outcomes. The move has drawn criticism but also cautious responses from Japanese officials, who have hinted at potential countermeasures. China's justification for

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Originally published on Deutsche Welle on 2/24/2026