China is threatening retaliation against Japan in response to the measures it has taken to restrict China’s access to advanced semiconductor tech.
The US has led a global effort to isolate China technologically and keep it from gaining access to the most advanced chip tech. US lawmakers have pressured allies to follow suit, and Japan is one of many that has followed suit, restricting sales of chips and chip-making equipment to China.
According to TechRadar, China is now threatening economic retaliation. The outlet says those measures could involve cutting off the export of minerals Japan relies on for its automotive industry. China could also ban the import of vehicles from Toyota and other Japanese automakers.
China’s threats underscore the ongoing geopolitical issues arising from countries’ efforts to isolate China. The country still represents one of the world’s biggest economies, and it produces minerals and elements the rest of the world—and especially the tech industry—rely on.
Beyond the geopolitical issues are question of whether efforts to isolate China are even working. Huawei was one of the biggest targets of US efforts, but the company has continued to manufacture advanced chips that ultimately surprised US lawmakers. Huawei has also been gaining ground in AI, a field the US has identified as one it cannot afford to fall behind China in.
China has already taken measures to retaliate against US companies, with plans to replace Intel and AMD chips in telecom equipment, much like the US and its allies did with Huawei and ZTE equipment.
Ultimately, the longer the tech and trade war continues between China and the West, the more companies will be caught in the middle and pay the price.