While the US pushes for stricter limits on tech exports, Japan tightens export controls on semiconductors and quantum tech, sparking China’s concerns over trade disruption.
Japan has reportedly introduced new export controls targeting advanced technologies such as semiconductors and quantum computing equipment, prompting concerns from China that the move could harm trade between the two nations.
The latest changes, set to take effect by the end of May 2025, will require companies to obtain licenses to export items like sophisticated microchips, lithography machines, and cryocoolers, all crucial for quantum computing development.
According to a report by the Japan Times, the curbs aim to prevent these technologies from being diverted for use in military applications, such as enhancing the precision of guided weapons or breaking encryption with quantum computers.
The measures come amidst escalating concerns in the US about the potential re-export of Nvidia semiconductors to China, particularly for artificial intelligence (AI) applications. To further tighten controls, Japan is expanding its entity list to include 42 additional foreign companies and organisations, raising the total number of Chinese entities under scrutiny to around 110.
In response, China has expressed concerns over the potential disruptions to supply chains and the broader implications for commercial exchanges, urging Japan to ensure that these restrictions do not hinder economic cooperation.
Beijing has also been actively engaging in diplomatic efforts with US allies, seeking stability amid leadership shifts in Washington.
Meanwhile, there have been reports of informal diplomatic exchanges between China and Japan, with Chinese Foreign Minister Wang Yi reportedly inviting Japan’s Prime Minister Shigeru Ishiba to the Asian Winter Games in February. However, it remains uncertain whether the visit will occur, as Ishiba is scheduled to meet with US President Donald Trump around the same time.
Japan has seen significant benefits from China’s demand for semiconductor manufacturing equipment. Still, the new controls may pose risks to this trade relationship, particularly in light of pressure from the US to limit the export of high-tech goods to China.
