China Sanctions 20 Japanese Firms, Blacklists 20 More Over Taiwan Remarks

• China imposed sanctions on 20 Japanese companies and placed 20 others on a watch list.
• The move follows Japan's Prime Minister Sanae Takaichi's past remarks on Taiwan, which China deemed serious.
• Targeted companies include Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fujitsu subsidiaries.
• Chinese exporters are banned from selling dual-use items to sanctioned firms; watch-listed firms require special licenses.
• Japanese company shares declined, and potential rare earth supply disruptions could impact Japan's GDP.