China has escalated tensions with Japan by placing 20 Japanese companies on an export control blacklist and another 20 on a watch list, citing national security concerns and opposition to what it calls Tokyo’s “remilitarization.” The move, announced by the Ministry of Commerce of the People’s Republic of China, restricts or blocks the export of dual-use goods—items with both civilian and military applications—to firms it believes are contributing to Japan’s defense buildup. Among those affected are subsidiaries linked to Mitsubishi Heavy Industries, while companies such as ENEOS Corporation and Subaru Corporation were placed under tighter export scrutiny rather than an outright ban. Beijing says the measures are lawful and necessary to safeguard national security and prevent military strengthening, but officials in Japan have condemned the action as unacceptable economic pressure. The development underscores worsening relations between China and Japan, as strategic rivalry increasingly spills over into trade and industrial policy.