China has issued a stern warning to Japan about potential economic retaliation if Tokyo proceeds with further restrictions on the sales and servicing of chipmaking equipment to Chinese companies, as reported by Bloomberg News. According to individuals familiar with the matter, Chinese officials have expressed these concerns in recent meetings with their Japanese counterparts, signaling possible repercussions that could affect key sectors, including Japan’s automotive industry.
The report highlighted that Toyota Motor Corp. has privately conveyed to Japanese officials that Beijing might respond to these curbs by limiting Japan’s access to essential minerals used in car manufacturing. This potential move could disrupt the automotive supply chain, impacting production and broader economic relations between the two nations.
China’s foreign ministry reiterated its stance against what it perceives as intentional disruptions to global production and supply chains. The ministry emphasized its opposition to the politicization of standard economic and trade collaborations and the imposition of technological blockades targeting China. Spokesperson Mao Ning, speaking at a regular news briefing, stated that China remains committed to maintaining global production and supply chain stability and practices export controls that are fair, reasonable, and non-discriminatory.
In response to inquiries, a spokesperson for Toyota noted that the company consistently evaluates its procurement strategies to best meet customer needs, extending beyond just mineral resources.
This development follows Japan’s recent decision to restrict the export of 23 types of semiconductor manufacturing equipment, aligning its policies with the U.S. strategy aimed at limiting China’s capabilities to produce advanced chips. These measures, implemented in July, reflect a broader international effort to address security concerns linked to technology trade with China.
Featured Image courtesy of DALL-E by ChatGPT
Follow us for more updates on Japan’s chip restrictions.