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China warns Japan of retaliation over new chip restrictions
Industry News- Sep 03,24
Toyota Motor Corporation has reportedly conveyed to Japanese officials that such a move from China could severely impact Japan's automotive industry, given the dependency on these minerals.
China has issued a stern warning of severe economic retaliation against Japan if it further tightens restrictions on the sale and servicing of chipmaking equipment to Chinese companies, according to a report. The report, citing sources familiar with the situation, suggests that Beijing could retaliate by cutting off Japan's access to critical minerals necessary for automotive production.
Toyota Motor Corporation has reportedly conveyed to Japanese officials that such a move from China could severely impact Japan's automotive industry, given the dependency on these minerals. Chinese officials have reiterated their stance in recent meetings with their Japanese counterparts, emphasising the potential consequences of further restrictions.
This development follows Japan's decision in July to restrict exports of 23 types of semiconductor manufacturing equipment. This move aligns with a U.S.-led initiative to limit China's capacity to produce advanced chips.
Neither Toyota nor the Chinese foreign ministry has responded to Reuters' requests for comment on the matter.
(Bloomberg News & ET)
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