Why the US needs Japan’s help on China chips restrictions - BusinessWorld Online

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Why the US needs Japan’s help on China chips restrictions - BusinessWorld Online
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Japanese companies can make up for lost China business by expanding elsewhere, such as Southeast Asia, a chip industry source familiar with internal discussions about export restrictions said. READ:

WASHINGTON — When the Biden administration unveiled aggressive export controls in October aimed at blocking China from becoming a global leader in advanced semiconductors it was missing a key ingredient: agreement from US allies to impose their own matching restrictions.

But while Japan is broadly in-line with the goals of the Mr. Biden administration’s expanded US export controls, Mr. Kishida’s government has been vague about the extent to which it will join in. The other top producers of chip-making gear are the United States and the Netherlands, home to ASML, another of the world’s biggest makers of chip-making tools.US officials are quick to play down the differences between the United States, Japan and other allies.

Still, said Daniel Russel, a former top US diplomat for Asia, a gap remains between the US and Japanese positions. Fearing that this will yield a military edge for an increasingly assertive China, US officials hope that keeping the most sophisticated chips – and the tools needed to make them — out of China’s hands will slow the country’s progress on advanced technologies.

If US diplomacy succeeds, its policies could have the intended impact, argues Chris Miller, author of “Chip War” and an associate professor at Tufts University.

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