US lawmakers urge Japan to strengthen chip restrictions on China
Illustrative photo (getty images)
Key US lawmakers urged Japan to strengthen restrictions on selling semiconductor manufacturing equipment to China. They warned that if Tokyo does not take action, Washington may impose its restrictions on Japanese companies, according to Bloomberg.
Leading Republicans and Democrats on the House Committee on China expressed their concerns in a letter dated October 15 to Japan's Ambassador to the US Shigeo Yamada, which the agency has reviewed.
They dismissed arguments that restrictions significantly harmed semiconductor equipment companies such as Tokyo Electron Ltd. The letter cites rising stock prices for Tokyo Electron, ASML Holding NV, Lam Research Corp., and Applied Materials Inc., and semiconductor manufacturing subsidy programs in the US and the European Union.
The lawmakers' letter also highlights concerns regarding China's ability to produce less advanced processors.
The letter states that without multilateral efforts to address these issues, the supply of American, Japanese, and Dutch semiconductor manufacturing equipment would grant Beijing "a functional veto over our nations' ability to produce our weapons systems and modern consumer goods at necessary levels."
While the lawmakers prefer a multilateral solution, they emphasize that the US has other options. One of these is the application of the so-called Foreign Direct Product Rule (FDPR), which allows Washington to regulate goods produced abroad even if they utilize minimal American technology.
Recently, the United States imposed sanctions on three companies, including two Chinese firms. They are suspected of involvement in the development and production of Russian drones.
At the same time, US authorities did not accuse American companies whose products Russia uses in missile production of violating export controls. Their components continue to be supplied to Russia through intermediaries.
