Japan mulls U.S. milder chip curbs

Japan mulls U.S. milder chip curbs

TOKYO Japan may opt for milder restrictions on chip production machinery sales in China than those implemented by the United States, even though they agree on export curbs, an influential Japanese ruling party lawmaker told Reuters on Wednesday.

Japan and the United States agreed last month to halt exports of equipment that China could use to make advanced chips, bringing Tokyo and Amsterdam in line with the restrictions announced by U.S. President Joe Biden'sBiden's administration in October.

The United States is being strict, but there is a question of whether we have to match that. Akira Amari, a former Liberal Democratic Party minister of economy trade and industry, said that the equipment is a reflection of the concern over the equipment.

The U.S. wants to hinder Beijing's bid to dominate global chip production and stop it from buying semiconductors that could enhance its military power.

If U.S. equipment is less competitive than those of its rivals, it could cause a political headache for Biden, because of the restrictions that are implemented in Tokyo, Washington and the Netherlands.

SEMI, an industry group representing 2,500 members in the semiconductor and electronics manufacturing supply chain, warned that export controls on China would not be effective unless U.S. allies adopt curbs in line with the United States.

Amari said he had been briefed by the Japanese government on the deal, which only the United States has publicly acknowledged.

He didn't say anything, but said specifics of the agreement, including what machinery would be subject to restrictions, had yet to be hammered out in talks.

Amari said governments and companies concerned with the issue will have to dig into it and find where the line needs to be drawn.