Japan may opt for milder chip-equipment curbs on China than US, says lawmaker

JAPAN may opt for milder restrictions on chip-production machinery sales to China than those implemented by the United States, even though they have agreed on export curbs, an influential Japanese ruling-party lawmaker told Reuters on Wednesday (Feb 8).

Japan last month agreed with the Netherlands and the US to halt exports of equipment that China could use to manufacture advance chips. This brought Tokyo and Amsterdam in line with sweeping restrictions announced by US President Joe Biden’s administration in October.

“The United States is being strict, but there is a question of whether we have to match exactly that. What we do share is a recognition of the concern over the equipment,” said Akira Amari, a former Liberal Democratic Party minister of economy, trade and industry.

The US wants to hamper Beijing’s bid to dominate global chip production, and stop it from acquiring semiconductors that could enhance its military power.

Any difference in the separate restrictions that Tokyo, Washington and Amsterdam implement could be a political headache for Biden, if it makes US equipment less competitive than those of its rivals.

SEMI, a global industry group representing 2,500 members in the semiconductor- and electronics-manufacturing supply chain, this month also warned that export controls on China would not be effective, unless allies of the US adopted curbs in line with those of the country.

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Amari said he had been briefed by the Japanese government on the deal, which only the US has so far publicly acknowledged.

He declined to give details, but said that specifics of the agreement, including what machinery would be subject to restrictions, had yet to be hammered out in talks.

“Governments and companies concerned with the issue will have to dig into it, and find where the line needs to be drawn,” he said. REUTERS