Japan expands export controls on advanced technology & expands foreign end user list
Date of publication: February 28th, 2025
Japan has issued a draft expansion of its export controls to include advanced chips and quantum computing-related technologies, aiming to prevent their potential use in weapons or espionage. The expanded controls will include advanced chips, lithography equipment, and cryocoolers needed for the manufacture of quantum computers. The Foreign Exchange and Foreign Trade Act (FEFTA) is the law governing export controls. The Ministry of Economy, Trade and Industry (METI) is responsible for managing the controls and issuing any necessary licenses.
The government is particularly concerned about the possible diversion of advanced chips to increase the computational capabilities of precision-guided weapons and of quantum computers that could be used for breaking encryption codes.
Companies will require a license to export these items to prevent their use in weapons or their development. The new controls are expected to come into force at the end of May 2025.
Separately, Japan is strengthening export controls by adding
42 Entities
to its Foreign End User List which primarily focuses on Chinese and Russian entities. The entities would be subject to increased oversight on any dual use items. The additions came into effect on February 5, 2025.Conclusion
Japan's expanded export controls reflect growing global concerns about the military and technological implications of advanced technologies. While Japan's decision aligns with U.S. policy, it risks straining trade relations with China, particularly in the semiconductor sector.
The list serves as guidance for Japanese controls on potential Weapons of Mass Destruction (WMD)-related exports and companies should ensure that their export practices are updated to align with these new restrictions.
These changes have been updated in ONESOURCE Global Trade Content.
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