China warns Japan chip curbs would threaten supply chains

The Ministry of Commerce said Japan's plans for export controls on semiconductors will undermine the stability of the global industrial and supply chains as well as disrupt normal business operations.

"For some time, certain countries have been stretching the concept of national security and abusing export control measures to impose sanctions aimed at suppressing China's semiconductor and other industries," a spokesperson with the Ministry of Commerce said on Friday.

The spokesperson highlighted that Japan's plans for export controls on chips will also harm the interests of both Chinese and Japanese companies.

According to the MOC spokesperson, China urges Japan to listen to the rational voices of industry stakeholders and reconsider its course of action. "We hope Japan will take into account the broader picture of international trade rules and China-Japan economic cooperation, and promptly correct these measures to avoid hindering the healthy development of bilateral economic relations."

As Japan has announced tech and trade curbs including sanctions on some Chinese firms, China made it clear that it reserves the right to take countermeasures to safeguard its legitimate rights and interests, the spokesperson said. China also reaffirmed its stance on ensuring the smooth functioning of global industrial and supply chains.

Jin Xu, chairman of the China Association of International Trade, said some countries' efforts to "decouple and sever industrial and supply chains" and build "small yards with high fences" will not benefit the local people and will ultimately harm local businesses.

China, with its robust technological capabilities, solid industrial foundation, and strong government support, is well-positioned to overcome any technological blockades, Jin said.

"I firmly believe China will make breakthroughs in the fields of chips. I am convinced that the suppression by some countries will not last," he said.