By Yan Zeyang

China's Ministry of Commerce announced on February 24 that it formally added 20 Japanese entities, including Mitsubishi Heavy Industries Shipbuilding Co., to its export control list, and placed 20 Japanese entities, including SUBARU Corporation, on a watch list. The control measures will have a profound impact on Japan's military industry.

Precisely targeting the core nodes in Japan's military industrial chain

The 20 Japanese entities incorporated on the export control list cover six key fields of Japan's military industry as follows:

The first is the shipbuilding industry. Represented by Mitsubishi Shipbuilding and Japan Marine United Corporation (JMU), it builds submarines, destroyers, and other battle force ships for the Japan Maritime Self-Defense Force (JMSDF), serving as the mainstay of Japan's expansion of maritime military power.

The second is the aerospace and power system industry. Several aero engine and maritime system subsidiaries under Mitsubishi Heavy Industries, as well as Kawasaki Heavy Industries Aerospace Systems Company, hold the core power technologies of Japanese combat and military transport aircraft.

The third is the core material industry. IHI Corporation's key subsidiaries in metal materials and aerospace sectors secure critical positions in the field of bottleneck materials such as high-temperature alloys required for aero engines.

The fourth is the field of national defense informatization. Fujitsu, NEC, and other large IT enterprises in Japan play a key role in defense digitalization, system integration, and cooperation in the manufacturing of radar and other equipment, making them important carriers of Japan's military "soft power".

The fifth is the field of research and development (R&D) and cultivation of talents. The National Defense Academy of Japan (NDA) is the cradle of senior officers of the Japan Self-Defense Forces (JSDF), and the Japan Aerospace Exploration Agency is responsible for R&D of cutting-edge military technologies such as hypersonic weapons and reconnaissance satellites.

The sixth is the maritime equipment industry. Relevant enterprises provide various supporting warships and auxiliary equipment for the JMSDF.

Adding 20 Japanese entities to the watch list focuses on "risk management". China's implementation of stricter "end-user" and "end-use" reviews on SUBARU and other entities has essentially plugged the loophole potentially leveraged by civilian enterprises to indirectly provide support for Japan's military industry.

Directly impacting Japan's military industrial supply chain

Heavy reliance on globalization and weak domestic substitution capacity are major vulnerabilities of Japan's military industry. The export control measures have directly hit the "Achilles' heel" of Japan's military industry.

First, Japan's military industry is confronted with a crisis of "supply disruption" of critical minerals and rare earth materials. Rare earth elements, as well as critical minerals such as gallium, germanium, antimony, and graphite, are indispensable to modern advanced weapons and equipment. However, Japan's reliance on China for many critical materials is as heavy as "irreplaceable". Even though Japan attempts to find alternative sources, the relocation of smelting capacity will take years, and the costs will increase exponentially.

The second is to trigger a "chilling effect" in the secondary supply chain. Thousands of small and medium-sized enterprises in Japan are affiliated to the 40 listed core entities. China's export control includes strict "end-use" and "end-user" reviews. To avoid violating China's regulations, suppliers will probably choose to voluntarily cut off business ties with these sanctioned enterprises.

Disruption of the critical supply chain of Japan's military industry will help curb the military ambitions of Japan's right-wing forces and put the brake on Japan's remilitarization process. China's export control is not only a precise countermeasure against Japan's military industry expansion, but also a just move to preserve regional peace and stability.

(The author is an associate research fellow at the China Institutes of Contemporary International Relations)

Editor's note: Originally published on china.com.cn, this article is translated from Chinese into English and edited by the China Military Online. The information and opinions in this article do not necessarily reflect the views of eng.chinamil.com.cn.