China Warns Japan of Economic Retaliation Over Chipmaking Restrictions

China has threatened severe economic consequences for Japan if it continues to restrict the sale and servicing of chipmaking equipment to Chinese firms. This follows Japan's recent alignment with U.S. technology trade controls aimed at curbing China's capacity to manufacture advanced semiconductors.

Bloomberg News reported on Monday that China has issued a stern warning to Japan, threatening severe economic retaliation if the nation imposes further restrictions on the sale and servicing of chipmaking equipment to Chinese firms. The report cites sources familiar with the situation.

Toyota Motor has privately conveyed to Japanese officials that Beijing could retaliate by cutting off Japan's access to essential minerals needed for automotive production. This position has been reiterated by several Chinese officials in recent discussions with their Japanese counterparts, according to the report.

China's foreign ministry has expressed strong opposition to what it calls the 'artificial disruption' of global production and supply chain stability, as well as the politicization of normal economic and trade cooperation. Spokesperson Mao Ning emphasized China's commitment to maintaining a stable global production and supply chain while implementing fair and reasonable export control measures. Meanwhile, Toyota has not yet responded to Reuters' request for comment. It's worth noting that Japan began imposing restrictions on the export of 23 types of semiconductor manufacturing equipment in July, aligning with a U.S. initiative to limit China's ability to produce advanced chips.

(With inputs from agencies.)