Why Did China Introduce the Watchlist System for the First Time?
On February 24, 2026, the Ministry of Commerce, in accordance with the law, added 40 Japanese entities to the Export Control Control List and the Watch List, respectively, and simultaneously introduced targeted export control measures. This is the latest action taken by the Ministry of Commerce following its announcement in January of this year regarding the strengthening of export controls on dual-use items to Japan. Three aspects of the Ministry of Commerce’s measures are worth noting: First, the Watch List system has been implemented for the first time, opening a new path for China’s targeted export control governance. Second, strict prohibitive measures have been imposed on entities on the Control List, demonstrating China’s firm stance against Japan’s “remilitarization” and nuclear ambitions. Third, these measures represent an upgraded version of Announcement No. 1. At present, globalization is facing headwinds and regional security risks are intensifying, but China’s toolkit is also rapidly expanding. In response to acts that infringe upon our legitimate interests, China stands ready to strike back at any time. (Yu Yuan and Tan Tian)
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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