China warns Japan of retaliation over potential new chip curbs

Beijing/Tokyo — China warned of severe economic retaliation against Japan if it further restricted sales and servicing of chipmaking equipment to Chinese firms, Bloomberg News reported on Monday, citing people familiar with the matter.

Toyota Motor privately told Japanese officials that Beijing could react to the curbs by cutting Japan’s access to minerals required for automotive production, the report said.

Several Chinese officials had repeatedly outlined the position with their Japanese counterparts in recent meetings, the report said.

China’s foreign ministry said the country had always been firmly opposed to the “artificial disruption” of global production and supply chain stability, the politicisation of normal economic and trade co-operation, and scientific and technological blockades against China.

“China has always been committed to maintaining the safety and stability of the global production and supply chain, and has always implemented fair, reasonable and non-discriminatory export control measures,” spokesperson Mao Ning said.

A Toyota spokesperson said the carmaker was constantly considering the best procurement strategies, not limited to mineral resources, to meet the needs of its customers.

Japan began restricting exports of 23 types of semiconductor manufacturing equipment, aligning its technology trade controls with a US push to curb China’s ability to make advanced chips in July.

Reuters