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Japan Bans Chip Manufacturing Equipment Exports to China

Published: 6.8.2023

Japan recently implemented a ban on the export of 23 types of chip manufacturing equipment to China. The move has sparked strong discontent from Beijing, reflecting the escalating tensions between the two nations in the technology sector.

China's Ministry of Commerce strongly criticized the recent decision, labeling it as "an abuse of export control measures and a significant deviation from the principles of free trade." The ministry expressed its determination to safeguard China's interests and protect its economic well-being.

An article in the state-controlled Global Times said that Japan faces "resolute countermeasures" to the decision. The article said that China could retaliate by restricting Japanese exports or by imposing tariffs on Japanese goods.

In 2019, Japan imposed restrictions on exports of rare earth minerals to China, which are used in the production of electronics. China responded by imposing tariffs on Japanese goods.

The trade tensions between Japan and China are part of a broader economic rivalry between the two countries. China is now the world's second-largest economy, and it is rapidly catching up to the United States.

The ban on chip manufacturing equipment from Japan is a major blow to China's ambitions to become a global leader in chip manufacturing. China is currently the world's largest consumer of chips, but it is heavily reliant on imports for the most advanced chips. The ban will make it more difficult for China to build its own domestic chip industry.

The ban is also a concern for the global chip industry. Japan is a major supplier of chip manufacturing equipment, and the ban could disrupt the supply chain for chips. This could lead to higher prices for chips and could impact the production of electronic devices.

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