The United States and Japan are close to reaching an agreement that would restrict the export of advanced semiconductor technology to China. The deal is part of broader efforts to address national security concerns related to sharing cutting-edge technology with China. Officials from both countries have been engaged in intense negotiations, focusing on semiconductor technologies that are critical for various high-tech industries.
The agreement comes amid growing tensions between the US and China and highlights the strategic importance both Washington and Tokyo place on maintaining technological advantages. The deal is expected to include measures to prevent the transfer of sensitive technology that could be used for military or other strategic purposes by China. This move aligns with the US Department of Commerce’s ongoing efforts to tighten export controls and limit China’s access to advanced semiconductor technology.
Once the deal is in effect, US and Japanese companies would face stricter regulations and oversight on their exports to China, particularly those that involve advanced manufacturing equipment and software used in producing semiconductors. The diplomatic maneuver reflects a growing trend among Western nations to safeguard their technological industries from potential adversaries. It also underscores the increasing importance of semiconductors in national security and global economic strategies.
Both nations are expected to formalize the agreement in the coming weeks, marking a significant step in their bilateral cooperation on technology and security issues. This strategic partnership is a clear signal of the measures that democratic nations are willing to take to protect their technological edge. The agreement aims to address loopholes in existing export rules and impose new restrictions reflecting the rapid advancements of Chinese companies in chip production over the last two years.
The White House intends to introduce these controls before the November presidential election.
Us-japan semiconductor export agreement
Negotiations have been ongoing for months, involving officials from the US, Japan, and the Netherlands.
The goal is to establish complementary export control regimes to ensure that Japanese and Dutch companies are not targeted by the US “foreign direct product rule.”
However, the situation remains delicate. A Japanese official expressed concerns about potential Chinese retaliation, which could include blocking exports of critical minerals like gallium and graphite. These minerals are essential for various Japanese industries.
The US export controls are designed to make it more difficult for China to acquire critical chipmaking tools and services, significantly impacting companies like ASML Holding NV in the Netherlands and Tokyo Electron in Japan. The US also seeks to align export control rules among the three countries to avoid diplomatic conflicts. China has expressed strong opposition to these measures, urging relevant countries to adhere to international economic and trade rules.
A spokesperson for the Chinese embassy in Washington stated that China would closely monitor developments and defend its companies’ lawful rights and interests. The US has been pushing Japan and the Netherlands to tighten their export policies on chipmaking equipment to China since mid-2024. Alan Estevez, the chief of export policy, has been instrumental in these discussions.
Despite US export restrictions, Chinese markets have found alternative means to access these technologies. Reports from September indicate that NVIDIA Corp AI chips are available in China at discounted rates, suggesting a significant supply despite the ban. This highlights the ongoing struggle between the US and China over semiconductor dominance.
