China imposed new export controls Monday on 40 Japanese entities, including divisions of Mitsubishi Corporation, Mitsui E&S, Fujitsu, and Komatsu, intensifying economic warfare between the two major capitalist powers. These measures prohibit Chinese and foreign exporters from selling “dual-use items” made in China to the targeted firms, directly impacting the supply chains of corporations deeply embedded in both civilian and military production.
Economic Warfare Escalates
The Chinese Commerce Ministry placed 20 Japanese entities, including multiple divisions of Mitsubishi Corporation, on a control list. Another 20 entities, such as Mitsui E&S, which manufactures engines and ship equipment, along with divisions of Fujitsu and Komatsu corporations, landed on a watch list. Chinese companies exporting to these firms must now apply for special licenses and provide risk assessment reports, alongside written pledges that the items won't serve military ends. Beijing claims these controls are “entirely justified, reasonable and lawful,” asserting they deter Japan’s “reckless pursuit of ‘new militarism.’” Japan’s Chief Cabinet Secretary Minoru Kihara called the curbs “unacceptable and extremely regrettable,” promising “necessary countermeasures” after assessing their impact. This isn't the first volley; China previously listed 40 Japanese companies in February, about 4 months ago, citing Japan’s continued “wrong path” of remilitarization.
Arms Race and Capital
Under Prime Minister Sanae Takaichi, Japan has significantly expanded its military capabilities. The state now allows exports of lethal weapons under a new policy. Japan’s military has acquired more offensive capabilities, including long-range missiles deployed on remote islands. The Ground Self-Defense Force announced Monday the deployment of a Type-12 missile launcher on Minamitorishima, its southernmost remote island, a move framed as a response to China’s expanding activity in the Pacific. Japan plans to revise its defense and security documents by December, a move that could further inflate its defense budget, channeling more public funds into the coffers of military contractors. George Chen, a partner at The Asia Group, described the measures as a “diplomatic message,” noting Beijing’s growing concerns about deeper defense cooperation between Japan, the United States, and other partners.
Imperialist Alignments
The struggle over Taiwan remains a central flashpoint in this escalating regional competition. China views the self-ruled island as its own territory, prepared to use force if necessary. Earlier this month, about 1 month ago, Chinese coast guard patrols east of Taiwan were described by state media as a “pointed warning” to Japan and the Philippines. This followed discussions between Japan and the Philippines regarding maritime boundaries in waters Beijing claims. Last week, about 1 week ago, the United Kingdom, Germany, and France issued a rare joint statement condemning Chinese activities in these waters, opposing any change to the status quo between China and Taiwan. These pronouncements reveal the intricate web of alliances and rivalries among imperialist powers, each vying for strategic advantage and control over vital trade routes and resources. The Chinese Commerce Ministry insists these curbs affect only a “small number” of entities and won’t disrupt “normal Sino-Japanese economic and trade exchanges,” but the message is clear: states will leverage economic power to protect their accumulated capital and geopolitical interests.