Business
Japanese Defense Stocks Slide After China Announces Export Controls
China added 20 companies to an export-control list that prohibits Chinese firms from selling them items such as machine tools, batteries and chip-making equipment.
Another 20 companies were added to a watchlist that means they can only receive such items if they satisfy China that they won’t be used in equipment sold to the Japanese military.
Many of the companies subject to export bans are defense-related subsidiaries of major industrial firms, including Mitsubishi Heavy Industries, IHI and NEC:
Shares of Mitsubishi Heavy Industries fell 3.1%, while shares of IHI and NEC slid 5.7% and 6.2%, respectively.
Shares in Subaru, which was added to the watchlist, dropped 3.5%. The carmaker has an aerospace unit that supplies the Japanese military.