While the U.S. is pressuring Japan and other allies to join the strengthening of sanctions on China’s semiconductors, China is said to have warned Japan that it will take serious economic retaliation if additional sanctions are imposed.
Bloomberg reported on the 2nd, citing multiple anonymous sources, that a high-ranking Chinese official has repeatedly told Japan that China will impose serious economic retaliation if Japan further restricts sales and maintenance of semiconductor equipment to Chinese companies.
Sources explained that the Chinese side is concerned about ways to cut off the supply of key minerals essential for automobile manufacturing such as Toyota.
Until now, the U.S. has been pressing the Japanese government to impose additional sanctions on companies such as Tokyo Electron to prevent them from selling and maintaining advanced semiconductor manufacturing equipment to China.
The United States expects to reach an agreement with Japan by the end of the year.
The U.S. has not ruled out the application of the Foreign Direct Products Regulation (FDPR), which requires the U.S. government to obtain permission when exporting products made in other countries if they have used any U.S. software, equipment, and technology.
U.S.-Japan authorities and Tokyo Electron did not comment on Bloomberg’s request for comment, and Toyota said it was constantly considering optimal procurement strategies and this was not limited to the mineral sector.
China’s foreign ministry said in a statement that it opposes any individual country politicizing a normal deal and attracting others to join the Chinese technology blockade.
Bloomberg previously reported that the Netherlands, the location of ASML, a semiconductor company, will join the U.S. sanctions to restrict some equipment maintenance in China.
JENNIFER KIM
US ASIA JOURNAL
