China warns Japan of economic retaliation for possible new chip curbs

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China warns Japan of economic retaliation for possible new chip curbs - Business Standard

Quick Summary:

Toyota is among the most important companies in Japan and is deeply involved in the country’s chip policy, partly reflected by the fact that it has invested in a new chip campus being built by Taiwan Semiconductor Manufacturing Co.in Kumamoto, according to one of the people.

US firms, similarly frustrated, had earlier suggested signaling to allies that their companies could face additional export licensing requirements if they continue to service customers in China that American firms are barred from working with.

Some in Japan pushed back on the idea that the Tokyo government should fall into line with Washington’s latest geopolitical strategy.“Japan shouldn’t tighten its export control just because the US is making such a request,” said Akira Minamikawa, an analyst with the research firm Omdia.“Japan should have its own philosophy, decide what’s best for the country and stand firm.