TMTPOST -- Beijing on Friday issued a serious warning about Japanese government’s plan to tighten export controls as the U.S. and its allies are attempting further their high-tech curbs on China.
Credit：Tokyo Electron
Japan's planned export controls on semiconductors will disrupt normal trade between Chinese and Japanese enterprises and damage the interests of businesses in both countries, said spokesperson for the Ministry of Commerce of China (MOFCOM) in a statement on Friday.
"For some time, a few countries have generalized the concept of national security and abused export control measures to suppress China's semiconductor and other industries," the spokesperson said.
The spokesperson urged Japan to listen to the rational voices of the industry, promptly rectify its actions, prevent relevant measures from hindering the healthy development of bilateral trade, and work with China to maintain the stability and smooth flow of global industrial and supply chains.
China reserves the right to take necessary measures to firmly safeguard its legitimate interests, the spokesperson stated.
The spokesperson made comments after Tokyo announced on January 17 that dozens of companies around the world including 18 Chinese firms would be the placed on its sanction list due to alleged support for Russia’s efforts to evade sanctions. The Japanese government also released a draft to add 21 new items, including advanced semiconductor and quantum computing-related equipment, to its export control list. The government is soliciting public opinion on the proposed new export controls. The METI is expected to implement the related measures as early as late May.
The newly-planned restrictions are the third round of control expansion in less than two years. Japan in June 2023 first imposed export controls to limit sales of chip equipment to China, placing restrictions on 23 types of semiconductor equipment, and in April, 2024 announced 21 additional new items, including advanced semiconductor and quantum computing-related equipment to its export control list.
Under Japan’s Foreign Exchange and Foreign Trade Act, companies must secure prior government approval before exporting items that could be used for military purposes. Exporter have to apply for export license to the Ministry of Economy, Trade and Industry (METI) if an export item is covered by the export control list. The METI, which is responsible for export control on both defense and dual-use goods and technologies, shall examines the appropriateness of the end-use and the end-user of the license application, and decides whether to permit or deny the application.
The additional equipment in the list included those used in EUV (extreme ultraviolet) lithography, crucial for developing the world’s most advanced chips, marks a critical step in this strategic limitation, following the U.S. imposition of enhanced controls in October, 2023. With that move, Japan became more aligned with U.S. policy targeting chips used in supercomputers and artificial intelligence (AI) applications. It was reported that Japan and Netherlands at the beginning of 2023 had agreed to comply with a number of U.S.-led restrictions relating to the exportation of high-tech chipmaking technology to China.
Japan’s tighter export controls, in line with U.S. actions to prevent cutting-edge semiconductor technology and devices from reaching China, increased risks of retaliation from Beijing. Bloomberg in last November reported senior Chinese officials have warned Japan could face “severe economic repercussions” if it decides to limit sales and maintenance of semiconductor equipment in step with U.S. policy.
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