Japan, Netherlands to join U.S. in restricting chip equipment exports to China, Bloomberg reports
A new report has suggested China will stop imports of semiconductors from Japan to Europe by the end of the year. The talks between the two countries will begin on Friday with Dutch authorities banning ASML Holding NV from importing machines used for a specific type of chips into China. Japan has proposed similar restrictions for Nikon Corp.
Industry and services of Japan
Japan has an immense industrial capacity and is home to some of the largest and most technologically advanced manufactures of motors and machinery. The industrial industry represents about 27 percent of Japans GDP. In 2019, Japan has a manufacturing production of 3rd most of its manufacturing in the world. The United Kingdom is ranked the third-largest automaker worldwide in the world. [172] [178]
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General Argument
Bloomberg News reported that Japan and the Netherlands will soon agree to join the United States in restricting semiconductor manufacturing equipment exports to China.
Bloomberg reported that talks between the countries will conclude as early as Friday, with the Netherlands restricting ASML Holding NV (ASML.AS) from selling machines to China used to make certain types of advanced chips, citing people familiar with the matter.
Japan would impose similar restrictions on Nikon Corp (7731.T), the report said Deputy Chief Cabinet Secretary Seiji Kihara, a government spokesperson, said Japan would take "appropriate steps" based on the United States and other nations' regulatory moves. He declined to comment further when asked about the report at a Friday afternoon media briefing.
The Dutch foreign ministry declined to comment. Prime Minister Mark Rutte, who has said he expects to reach an agreement with the United States and other allies on stricter controls but that the Netherlands will not simply adopt U.S. rules, will take questions at his weekly news briefing on Friday.
Getting the Netherlands and Japan to impose tighter export controls on China would be a major diplomatic win for U.S. President Joe Biden's administration, which in October announced sweeping restrictions on Beijing's access to U.S. chipmaking technology to slow its technological and military advances.
Without Japanese or Dutch cooperation, U.S. companies would face a competitive disadvantage.
"We have been in discussion with the United States and other countries regarding the export-control regime," Yasutoshi Nishimura, Japan's Minister of Economy, Trade and Industry, told reporters on Friday.
An image of a microchip.
"We will implement any measures in accordance with our Foreign Exchange Law and through international cooperation," he added, declining to provide further details.
While Nikon could be affected, the Japanese company most likely to be affected by new restrictions will be chip manufacturing machinery maker Tokyo Electron, which relies on China for about a quarter of its sales, said Masahiko Hosokawa, a Meisei University professor and former director general of trade control at the ministry.
"A balance needs to be struck so no one among Japan, the United States and Europe will be disproportionately disadvantaged. It's about fairness," he said.
Dutch officials have insisted that fresh controls address national security concerns rather than favor U.S. chip-related companies.
Japan expects sales at affected chip-related companies to rebound quickly because the market for their equipment is expanding.