What are China Japan export controls and why do they matter now?

They are Chinese rules that restrict exports of dual-use goods to certain Japanese firms. Beijing just put 20 entities on a ban list and 20 on a watchlist. This can disrupt parts, test gear, and materials tied to defense and space, raise costs, and lengthen lead times for Japan manufacturers.

How could this affect Japan defense stocks near term?

Japan defense stocks can see selling as investors price in supply delays, higher input costs, and compliance work. Names with deeper China exposure or complex avionics supply lines may underperform. Firms that already diversified suppliers, built inventory, or have strong domestic contracts could show relative resilience.

Why did the yen slide to around ¥155.27 per USD?

The yen slides about 0.4% as risk sentiment softened and hedging demand rose after the controls. A weaker yen can support exporters, but it also makes dollar-priced inputs costlier. Traders watch USD/JPY around 155 and option markets for signs of stress or a quick mean-reversion bounce.

What should retail investors in Japan watch this week?

Track official guidance from METI and company updates from affected contractors. Watch USD/JPY near 155, rare earth inventory comments, and any signs of license flexibility from China. For global cues, monitor ^DJI futures and volatility, and keep position sizes aligned to daily ATR rather than headlines.

Law and Government

^DJI Today: February 25 China Curbs Japan Dual-Use Exports; Risk-Off Watch

ByHuzaifa Zahoor February 25, 2026February 25, 2026

China Japan export controls took center stage today after Beijing added 20 Japanese entities to a dual-use ban list and placed 20 more on a watchlist. The action pressured Japan defense stocks and put rare earth risk back in focus for supply chains. The yen slides about 0.4% to ¥155.27 per USD, signaling caution into the cash open. We explain the policy, market impacts, and hedges to consider, plus the risk-off watch for the Dow. Our aim is clear guidance around China Japan export controls.