Beijing Tightens Controls, Japanese Embassy Warns Japanese Companies to Be Vigilant

Amid escalating export controls imposed by China on Japan, the Japanese Embassy in China issued a notice on the 7th, reminding Japanese companies operating in China to be vigilant about Beijing's regulatory measures.

According to Kyodo News Chinese website, the Japanese Embassy in China posted a "Notice" on its official website on the 7th, stating that the Chinese Ministry of Commerce successively announced export control measures to Japan in January, February, and June of this year. In July of this year, a reporting channel was established for suspected illegal export of dual-use items (military and civilian dual-use goods), and reporting of typical cases was encouraged, indicating that China is continuously strengthening its review and enforcement efforts in this regard.

The Japanese Embassy in China reminded that if Chinese export control-related laws and regulations are violated, the parties involved may not only be fined but also face criminal penalties. The embassy mentioned that although the Japanese government has lodged a strong protest with China regarding the relevant control measures and demanded their withdrawal, there have recently been cases of Japanese citizens being detained by China on suspicion of "smuggling goods prohibited from import and export by the state."

The embassy urged Japanese companies in China to pay close attention when exporting dual-use items from China to Japan. If they encounter any questions or investigations from the Chinese authorities, they should contact the embassy's business support window for consultation in a timely manner. This notice was only published in Japanese, and the Chinese version of the embassy's webpage did not display related content.

Two employees of Japan's Fuji Electric Group were arrested by Chinese authorities in June on suspicion of export violations related to motors with built-in rare earth magnets and other items.

Kyodo News analyzed that as China's export controls escalate, supply shortages caused by China's restrictions on key mineral exports have begun to affect Japan's overall economy, forcing the Japanese government and businesses to accelerate their search for alternative solutions.

Yoshinobu Tsutsumi, Chairman of the Japan Business Federation (Keidanren), stated at a regular press conference on the 6th regarding China's additional implementation of export controls on dual-use items for Japanese entities, "This is extremely regrettable, and we demand its withdrawal."

He pointed out that the series of control measures that China has been strengthening since January of this year have had a negative impact that has expanded to Keidanren's member companies.

After the Chinese Ministry of Commerce announced on June 29th that it would add 20 companies and organizations, including a subsidiary of Mitsubishi Electric, to its control list, the total number of affected Japanese entities has increased to 40. In response, Tsutsumi described, "The (control) level is rising little by little."

Tsutsumi also admitted that the specific arrangements for a planned visit to China by the heads of the three major economic organizations, Keidanren, the Japan-China Economic Association, and the Japan Chamber of Commerce and Industry, are currently "undetermined." According to reports, since the planned visit in January of this year was postponed, there has been no progress in restarting the relevant visit. (Editor: Zhou Huiying / Qiu Guoqiang) 1150707

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