Senior Chinese officials have repeatedly warned Japan about ramping up semiconductor sanctions in tandem with the U.S. Bloomberg reports that if Japan decides to restrict sales and maintenance of semiconductor equipment in step with U.S. policy, it could face “severe economic repercussions” from the Chinese. With increased pressure from the U.S. about possible new rules, Japan sits uncomfortably between a rock and a hard place.
Access to advanced semiconductor tech is behind China’s posturing, but the worst effects of Chinese retaliation would likely be felt by an entirely different industry in Japan. Concerns are that Chinese retaliation would focus on blocking essential supplies destined for Japan’s automotive industry.
