China’s 2nd round of restrictions on exports to Japan

Research evidence excerpt

China’s 2nd round of restrictions on exports to Japan

30 June 2026

However, considering that China accounts for 70% of the refining market for most

minerals, as noted in the IEA’s 2025 report, global procurement demand could

concentrate on the remaining 30% share under extreme circumstances. From a long-

term perspective, Chinese authorities have strengthened their competitive

advantages on the supply side by controlling rare earth exports, controlling exports of

refining technology, preventing talent drain, and stockpiling raw materials. Building

alternative supply chains requires not only securing raw materials but also developing

refining technology and cultivating talent, so this will likely take years.

Companies subject to export

restrictions rises to 40, up

from February

Figure 1. Additional companies subject to export restrictions on (military-civilian) dual-use products as announced by China

Dual-use Export Control List Dual-use Export Watch List

1 National Institute for Defense Studies MITSUI E&S

2 Ground Systems Research Center Mitsui Bussan Aerospace Co., Ltd. Maintenance Center

3 Naval Systems Research Center Terra Drone

4 Air Systems Research Center ACSL

5 NIKKO TOKKI Mitsubishi Nuclear Fuel

6 NIKKO-YPK SHOJI Japan Nuclear Fuel

7 Mitsubishi Electric Defense and Space Technologies Fujitsu Network Solutions

8 Mitsubishi Electric Software Corporation Hitachi Advanced Systems

9 Mitsubishi Electric Engineering Komatsu Industries

10 Mitsubishi Precision Komatsu NTC

11 MHI Oceanincs OKI Electric Industry

12 MHI Sagami High-tech OKI Com-Echoes

13 MHI Logitec OKI Circuit Technology

14 KOWA KOGYO OKI Nextech

15 MHI Special Vehicles Parts Supply & Technical Service OKI Engineering

16 MHI Maritech YDK Technologies

17 Kawajyu Gifu Manufacturing Nihon Denji Sokki