Author : Antara Ghosal Singh

Published on: Mar 13, 2026

On 24 February, China expanded its export controls to include 40 Japanese companies and institutions. These entities are related to key industries such as shipbuilding, aero-engines, defence electronics, semiconductor materials, and optical films, and include multiple subsidiaries of Mitsubishi Heavy Industries, Kawasaki Heavy Industries, IHI Corporation, NEC Corporation, and Fujitsu, as well as the National Defense Academy of Japan and the Japan Aerospace Exploration Agency (JAXA). 

Chinese media indicated that the move is intended to advance a longer-term “controlled decoupling” between China and Japan in material and precision manufacturing. This includes China increasing its R&D investment in semiconductor process materials, optical thin films, and speciality chemicals, while Japanese firms are accelerating their ‘China plus one’ strategy by diversifying high-end manufacturing to Southeast Asia and India to mitigate policy risks.

For full article, please open the link:

https://www.orfonline.org/expert-speak/china-us-japan-china-s-changing-calculus-in-east-asia

The article was published by ORFONLINE.

IRSEA AND ORF ARE PARTNERS.

The opinions expressed in this article are the authors’ own and do not necessarily reflect the official policy, position or view of IRSEA