UPDATE 1-China imposes export controls on 20 Japanese entities to curb ‘remilitarisation’

China has prohibited ​the export of dual-use items ‌to 20 ​Japanese entities that it says supply Japan's military, the commerce ministry announced on Tuesday.

The measure targets ‌units of major Japanese industrial conglomerates such as Mitsubishi Heavy Industries Shipbuilding and Mitsubishi Heavy Industries Aero Engines, the ministry said, without specifying the controlled ‌items. The restrictions were aimed at curbing Japan's "remilitarisation" and nuclear ambitions, ‌it said, adding overseas organisations and individuals are also banned from transferring Chinese-origin dual-use items to the listed entities.

Firms could apply to sell to the listed entities under "special circumstances" ⁠that ​required them ⁠to export, the ministry said in a statement. China has assured that entities operating "in good ⁠faith" have no reason to worry, and that the measures announced will not affect ​normal economic and trade exchanges between the two countries.

The commerce ministry ⁠also added another 20 Japanese entities, including Subaru Corp, Itochu Aviation, and Mitsubishi Materials Corp ⁠to ​a watch list, saying it could not verify the end-users or end-uses of the entities' dual-use items. Subject to stricter scrutiny, companies ⁠exporting to these entities would have to apply for individual export licenses ⁠for dual-use items ⁠and provide a written commitment that the items would not contribute to enhancing Japan's military capabilities.