China has accelerated enforcement of export control measures against Japanese entities with military ties, which officials and experts said sends a clear signal urging Japan to withdraw provocative remarks on Taiwan while curbing Japan's remilitarization and its attempt to possess nuclear weapons.

If the Japanese administration continues down this wrong path, it will further endanger bilateral economic relations, experts warned.

On Tuesday, the Ministry of Commerce added 20 entities, including Mitsubishi Heavy Industries Shipbuilding Co and the National Defense Academy of Japan, to its export control list, because these entities are "involved in activities that would enhance Japan's military capabilities".

Export operators are prohibited from sending dual-use items — goods or technologies that have both civilian and military applications — to any of these 20 entities, the ministry said.

Overseas organizations and individuals are prohibited from transferring or providing dual-use items originating in China to these entities, it added, emphasizing that relevant ongoing activities must cease immediately.

The ministry also placed another 20 entities, including Subaru Corp and Sumitomo Heavy Industries, as well as research institutions and trading companies, on a separate "watch list" requiring stricter reviews of exported items that could be used for military purposes.

For these entities, exporters cannot apply for general licenses or obtain export certificates through simplified registration procedures.

When applying for individual licenses, exporters must submit a risk assessment report regarding the listed entities and provide a written commitment that the dual-use items will not be used for any purpose that contributes to enhancing Japan's military capabilities.

"The measures are aimed at curbing Japan's remilitarization and its attempt to possess nuclear weapons, and are completely justified, reasonable and lawful," said a spokesperson for the ministry. "These measures do not affect normal economic and trade exchanges between China and Japan. Japanese entities that act in good faith and comply with the law have nothing to worry about."

Tuesday's announcement builds on earlier export control measures that came in response to Japanese Prime Minister Sanae Takaichi's erroneous remarks in November hinting at the possibility of military intervention in the Taiwan Strait and her refusal to retract such remarks.

In January, the ministry issued broad restrictions on exports of all dual-use items to Japanese military-related end users. Those rules cover over 1,030 tariff lines, encompassing rare earth minerals, gallium, germanium, graphite and industrial diamonds.

The latest measure singles out dozens of Japanese entities because of their military ties, with shares of several companies dropping following the announcement.

"Export control measures have clear boundaries. These are not comprehensive trade restrictions and their direct impact on overall bilateral trade volume is relatively limited," said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.

However, the indirect consequences might be more significant, Zhou said. "The spillover effect cannot be ignored. Japanese businesses across sectors will feel the increasing political risks due to the misguided positions and persistent ambitions of Takaichi and right-wing forces to advance Japan's military buildup," he said.

Lyu Kejian, vice-president of the Chinese Association for Japanese Economic Studies, noted that China serves as Japan's largest import source country and second-largest export destination, making stable bilateral economic relations essential for Japan's macroeconomic objectives.

As the engines of global growth sputter, Japan's economy is grappling with a distinct lack of momentum and the persistent threat of stagflation. Whether it can break free from this trend of sluggishness remains an open question, Lyu said.

Any significant disruption in trade ties with China would deliver a direct shock to an economy already struggling to find its footing, he added.

wangkeju@chinadaily.com.cn