Beijing warns Japan not to abuse export controls as ban on chip-making tools takes effect

As Tokyo’s export controls on 23 items for manufacturing advanced semiconductors came into force, Japan’s Kyodo news agency said about 10 Japanese companies involved in manufacturing such equipment are likely to be affected and Beijing warned Japan not to abuse export controls.

The stricter export rules came into force on 23 July, ‘in line with U.S.-led efforts to stymie China’s ability to develop high-end semiconductors capable of being used for military purposes,’ the news agency said.

It explained that in October last year the United States rolled out a sweeping set of export controls on certain high-end chips that China could use to train artificial intelligence systems and modernize its military, while asking Japan and the Netherlands, which possess advanced chip-manufacturing technologies, to follow suit.

Under the new regulations, Japan’s list of restricted items now includes equipment for cleaning, checkups and lithography, a technology used for creating complex patterns that can be etched into semiconductor wafers, essential in producing cutting-edge chips.

Japanese industry minister Yasutoshi Nishimura has said the impact on domestic companies will likely be limited as the export controls target ‘extremely advanced’ technology. Kyodo did not name the 10 companies in Japan that it said will be most greatly impacted by the new export rules.

But Global Times, the Chinese Communist Party’s official newspaper, said in an article quoting experts in China that ‘Japanese chipmakers such as Nikon Corp and Tokyo Electron Ltd could suffer significantly.’

Japan has insisted the export controls do not target China, but Beijing foreign ministry spokesperson Mao Ning disagreed. ‘Despite China’s serious concerns, Japan went ahead with its export restrictions that explicitly target China,’ she told reporters on 24 July. ‘China is deeply dissatisfied and finds Japan’s action regrettable,’ she said.

She added: ‘China urges Japan to keep in mind the larger picture of China-Japan economic and trade cooperation and Japan’s long-term interests, abide by international economic and trade rules, not to abuse export controls and make sure its action does not disrupt normal semiconductor cooperation between our two countries. We will closely follow the impact of the restrictions and resolutely protect our own interests.’