China’s MOFCOM Adds 20 Japanese Entities to Export Control 'Watch List'

In a significant development for APAC supply chains and regional trade compliance, China’s Ministry of Commerce (MOFCOM) announced today (24 Feb 2026) the addition of 20 Japanese entities - comprising 19 corporations and 1 university - to its regulatory Watch List (关注名单).

The Context & Justification

According to MOFCOM Announcement No. 12, the decision was made under China's Export Control Law and regulations on dual-use items. The primary stated reason is the inability to verify the end-users and end-uses of dual-use items exported to these specific entities. MOFCOM's notice explicitly mentions tighter scrutiny to ensure that dual-use items do not contribute to the enhancement of Japanese military capabilities.

What This Means for Compliance & Supply Chains

For businesses navigating cross-border trade, the immediate operational impacts are clear:

• Suspension of General Licenses: Exporters can no longer use general licenses for dual-use shipments to these entities.

• Enhanced Due Diligence: Single-item license applications will now require rigorous risk assessment reports.

• Written Guarantees: Exporters must provide formal written commitments ensuring that the items will not be used for any military purposes.

  
  

This move highlights Beijing's increasing willingness to utilise its modernised export control toolkit to manage national security concerns and scrutinise dual-use supply chains.

Companies deeply integrated into Sino-Japanese tech and manufacturing ecosystems need to immediately review their end-user matrices.

The Full List of Sanctioned Entities:

1. SUBARU Corporation

2. FUJI Aerospace Technology Co., Ltd.

3. ENEOS Corporation

4. Yusoki Co., Ltd.

5. ITOCHU Aviation Co., Ltd.

6. Leda Group Holdings Co., Ltd.

7. Institute of Science Tokyo (University)

8. Mitsubishi Materials Corporation

9. ASPP Co., Ltd.

10. Yashima Denki Co., Ltd.

11. Sumitomo Heavy Industries, Ltd.

12. TDK Corporation

13. Mitsui Bussan Aerospace Co., Ltd.

14. Hino Motors, Ltd.

15. Tokin Corporation

16. Nissin Electric Co., Ltd.

17. Sun Tectro Co., Ltd.

18. Nitto Denko Corporation

19. NOF Corporation

20. Nacalai Tesque, Inc.