China demands Japan not to support U.S. chip export rules as Washington attempts to rally supporters

April 4, 2023: Chinese Foreign Minister Qin Gang suggested Japan not support U.S. curbs on the semiconductor industry of China as Washington keeps trying to rally countries behind its chip export regulations.

“The U.S. is bullying tactics to brutally suppress Japan’s semiconductor industry, and now similar tactics are being used again against China. What you do not desire, do not do to others,” Qin has stated to his Japanese double Yoshimasa Hayashi, the translation of a Chinese foreign ministry information.

“Japan should not help the tiger due to the pain is still there. The embargo will further inspire China’s decision to stand on its own feet,” Qin said.

Semiconductors’ critical components, from home appliances and consumer electronics to military equipment, have been thrust into a fight for tech prominence between the U.S. and China.

In the previous year, the U.S. Department of Commerce introduced sweeping rules to cut China off from obtaining or manufacturing advanced chips move analysts said could hobble the domestic semiconductor aim of the second-largest economy of the world.

For the U.S. laws to be effective, Washington requires the buy-in from key nations in the semiconductor supply chain, which includes South Korea, Japan and the Netherlands.

Washington is trying to rally some of these countries around its measures, finding some success.

Japan is a vital semiconductor supply chain, with key firms, which include Sony and Tokyo Electron. On Friday, Japan announced export restrictions on 23 types of semiconductor-creating equipment but did not specifically name China.

This follows the Netherlands, home to one of the numerous critical semiconductor firms, ASML, which announced export limitations on “advanced” chip manufacturing equipment last month.

While these countries have put a few export restrictions, they are still trying to monitor trade ties with China.

Japan, China’s most significant trading partner, has maintained that its chip exports are not aimed at a particular country.

However, tensions are high between China and Japan, with Beijing expressing concern over Japan’s military build-up. Meanwhile, Hayashi urged China to release a Japanese national detained in Beijing.