China’s government has urged Japan not to interfere with the semiconductor industry after Japan implemented restrictions on the export of chip-making technology. These restrictions limit Chinese access to tools necessary for producing advanced chips used in smartphones, artificial intelligence, and other applications. This move follows similar technology restrictions imposed by the United States and its allies on China for security reasons.
A spokesperson from China’s foreign ministry expressed dissatisfaction with Japan’s actions and called for measures to avoid disrupting the normal cooperation between the two countries in the semiconductor industry. The ruling Communist Party of China has invested significant funds in building domestic chip foundries but still relies on Western and Japanese technology to produce the most advanced chips. This dependence on foreign technology poses a challenge to Beijing’s efforts to develop its own tech industries.
The United States had previously imposed restrictions on Chinese access to chips and chip-making technology, and the Biden administration has expanded these controls to include access to chip design and manufacturing tools. In response, China has been relatively slow in its reaction, likely to avoid disrupting its emerging tech industries. Notably, last month, Beijing signaled potential export review processes and restrictions on gallium and germanium, metals used in semiconductor production, which rattled Japanese and Korean chip manufacturers.
Perspective: The competition in the semiconductor industry is intensifying, with countries like China and Japan vying for dominance in this critical sector. The restrictions imposed by Japan on the export of chip-making technology to China highlight the growing tensions in the global tech supply chain. As countries prioritize their national security and economic interests, striking a delicate balance between cooperation and competition will be key to maintaining stability and fostering innovation in this vital industry.
