Experts believe that this move could affect the strategic balance in the Asia-Pacific region and further increase tension in the trade and diplomatic relations between the two countries.

China's action increased the tension between other countries.

China-Japan Tensions: Global geopolitical tensions have steadily increased over the past few years. Following the Middle East and the Ukraine conflict, tensions are now being seen in US-Iran relations and new tensions in Asia. The latest development has escalated tensions between China and Japan, where Beijing has taken action against 40 Japanese companies. China alleges that these companies are involved in activities related to reinvigorating Japan's military capabilities.

Tensions escalated further when Japanese Prime Minister Sanae Takaichi indicated that Tokyo might consider intervention if China took military action against Taiwan, which China has long claimed as its own territory and is extremely sensitive to the issue.

China-Japan conflict

Following this, China's Ministry of Commerce placed 20 Japanese companies on an export control list, while 20 others were placed on a separate watch list. Companies on the export control list will no longer be able to import "dual-use" goods from China. Dual-use goods are those that can be used for both civilian and military purposes.

This action has targeted several major Japanese companies, including Mitsubishi Heavy Industries (shipbuilding, fighter aircraft engines, and marine machinery), Kawasaki Heavy Industries , and Fujitsu. According to China's Ministry of Commerce, these companies will also be barred from receiving dual-use goods from foreign entities operating in China.

Experts believe that this move could affect the strategic balance in the Asia-Pacific region and further increase tension in the trade and diplomatic relations between the two countries.

Tension due to Beijing's action

The Ministry of Commerce of the People's Republic of China stated in its official statement that any activity involving dual-use goods should be immediately halted if they could be linked to military use. The ministry also warned that violations will result in strict action. China has implemented additional monitoring mechanisms for the 20 companies on the watchlist.

Now, any supplier from China exporting to these companies will first have to apply for an export license. They will also be required to submit a detailed risk management report outlining the intended use of the goods. They will also be required to provide a formal undertaking assuring that the dual-use goods will not be used in Japan's military activities. Analysts believe this move is not merely a trade control measure, but also a strategic message that China intends to firmly enforce its stance on regional security and the Taiwan issue.