China threatens severe economic retaliation if Japan tightens chipmaking equipment restrictions

China threatens Japan with retaliation

China has warned of severe economic retaliation against Japan if it further restricts sales and servicing of chipmaking equipment to Chinese firms, Bloomberg News reported on Monday, citing people familiar with the matter.

Toyota Motor privately told Japanese officials that Beijing could react to the curbs by cutting Japan's access to minerals required for automotive production, the report said.

Several Chinese officials had repeatedly outlined the position with their Japanese counterparts in recent meetings, the report added.

China's foreign ministry said the country has always been firmly opposed to the "artificial disruption" of global production and supply chain stability, the politicisation of normal economic and trade cooperation, and scientific and technological blockades against China.

"China has always been committed to maintaining the safety and stability of the global production and supply chain, and has always implemented fair, reasonable and non-discriminatory export control measures," spokesperson Mao Ning said, when asked for a comment at a regular news briefing.

A Toyota spokesperson said the automaker was constantly considering the best procurement strategies, not limited to mineral resources, to meet the needs of its customers.

Japan began restricting exports of 23 types of semiconductor manufacturing equipment, aligning its technology trade controls with a U.S. push to curb China's ability to make advanced chips in July.