The United States and Japan are approaching a deal to restrict tech exports to China, targeting its growing semiconductor industry, according to Financial Times. While the Biden administration seeks tighter export controls before the upcoming U.S. election, Japan remains wary of Chinese retaliation, particularly over critical minerals such as gallium and graphite, which are essential to Japan’s tech sector.
Washington is pushing to prevent China from acquiring advanced chipmaking tools, a move that would also affect companies like Japan’s Tokyo Electron and the Netherlands’ ASML. Japan fears that Beijing could retaliate by limiting mineral exports, which would drive up costs and disrupt supply chains for Japanese manufacturers.
The US, Japan, and the Netherlands aim to synchronize their export rules to avoid any fallout from America’s strict foreign direct product rule. However, the fragility of the talks underscores the balancing act for Japan, which faces pressure from Washington while managing growing concerns over China’s potential response. Negotiations continue as both sides seek to finalize the agreement in the coming months.
