China slams Japan over new semiconductor export controls

Imports and Exports | | MIC Customs Solutions |

The Chinese government has criticized moves by Japan to restrict exports of critical semiconductors to the country.

China's government has hit out against new export controls on computer chips imposed by the Japanese government that are set to come into force from July.

Earlier this year, Tokyo announced restrictions on exports of semiconductors to China, following in the footsteps of a US-led ban on sales of high-tech chips to the country announced last year. This week, it released further details of affected products, which cover 23 different types of chip.

However, Beijing has warned the new measures will be even more disruptive than Washington's controls and represent a "serious deviation" from free trade rules.

In a statement, a spokesman for the Ministry of Commerce said the ban would "severely damage the interests of Chinese and Japanese companies and the economic and trade cooperation between the two countries, disrupt the global semiconductor industry landscape, and impact supply chain security and stability".

Currently, China is the largest market for Japanese-produced semiconductors, accounting for $5.9 billion worth of exports in 2022, according to China Daily. This represents almost a third of exports.

Chinese industry figures have also expressed concern that the impact will be far more wide-reaching than the US export controls, which are focused on the most-high-tech chips.

The Financial Times reports there are fears that the new rules will impact on the production of lower-grade silicon, which is used in goods ranging from washing machines to cars.

China's Commerce Ministry spokesman called on Japan to correct its "wrong trade practices" and warned Beijing could take actions to defend its interests.

Tokyo's move comes after the US has been urging other nations to follow its lead in restricting sales of high-tech semiconductors to China. Earlier this year the Netherlands - home to ASML, one of the world's largest chipmakers - also announced tighter export controls on shipments to China.