Blocking chip sale to China will only serve US hegemony

Honoring the United States' China-containment policy, the Japanese government has decided to impose semiconductor export controls on China to prevent the products from being used for military purposes, Japanese media have reported.

The Japanese government will amend the relevant rules of the foreign exchange and foreign trade law to ensure Japan's chip production equipment is not used by China to produce chips. The rules stipulate that the export of certain products and technologies requires the approval of the minister for economy, trade and industry, and the revised rules will be published soon. That means Japan may impose the chip export controls as early as this spring.

In October, the US imposed a ban on exports of chip-making equipment and related technology to China and also asked Japan and the Netherlands to follow suit. In talks senior officials held in Washington on Jan 27, Japan and the Netherlands agreed to cooperate with the Joe Biden administration's semiconductor export controls on China. According to Kyodo News, the idea is to implement the January consensus, but it did not name China to avoid inviting retaliation.

The US is reportedly striving to persuade the Republic of Korea to join the "chip alliance", but Seoul has not joined it yet.

Considering that the export ban will affect their own enterprises in the Chinese market, Japan and the Netherlands may adopt different policies, and some Japanese companies with a large sales share in the Chinese market will be forced to review their overseas business strategies. According to Semiconductor Equipment Association of Japan data, chip manufacturing equipment sales to China in 2021 accounted for 30 percent of Japan's total sales.

With the implementation of chip export restrictions on China, it is estimated that Japan's chip equipment sales to China may fall by half, and involved Japanese enterprises will have to substantially curtail their production.

In order to safeguard its hegemony and selfish interests, the US has abused export controls by coercing some countries into forming a China-containment clique by politicizing science, technology and economic and trade issues. The move will not only sabotage the global supply chains but also dampen industrial efficiency and innovation. Everyone should know that any attempt to block others' way will only block one's own way in the end. China reserves any means to safeguard its legitimate interests.