"Implement the Same Semiconductor Export Controls on China"… US Pressures Allies Including Japan and EU

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Biden administration in the United States is reportedly pressuring allied countries, including Japan, to adopt semiconductor export controls targeting China, which it announced earlier last month. The aim is to isolate China and tighten restrictions by leveraging allies, and it is expected that demands may also be made to CHIP4 members South Korea and Taiwan. The U.S. is also known to be pressuring the European Union (EU), which has united with the U.S. on sanctions against Russia, to implement similar export control measures targeting China.

On the 2nd, Nihon Keizai Shimbun cited Japanese government officials reporting that the Japanese government is receiving such requests from the U.S. and is coordinating internally. Discussions are underway regarding which parts of the U.S. export control measures targeting China can be accepted and applied, while also monitoring the trends of the EU and South Korea.

The measures under consideration by Japan are the semiconductor export regulations announced by the Biden administration on the 7th of last month. The U.S. has prohibited the sale of advanced semiconductor equipment made in the U.S. to Chinese semiconductor manufacturers and restricted semiconductor exports used in artificial intelligence (AI) and supercomputers. Accordingly, U.S. companies must obtain permission to sell equipment to Chinese companies producing semiconductors above a certain level. Additionally, this measure has blocked Americans from working at Chinese advanced technology companies.

[Image source=AP Yonhap News]

Nihon Keizai Shimbun reported, "The U.S. is urging allied countries to impose export controls on advanced semiconductor-related components," adding, "There is a possibility that they will demand broad coordination, including semiconductor manufacturing equipment and employment of engineers involved in production and development." It also stated, "They aim for early agreement through consultations with related governments."

The U.S. has already mentioned several times that it wants allied countries to join its export control policy targeting China. Earlier, on the 27th of last month, Alan Estevez, U.S. Deputy Secretary of Commerce for Industry and Security, said, "The administration is getting closer to having allied countries participate in the regulations," adding, "Not only I but also the Secretary of Commerce and National Security Council (NSC) advisors are all in communication. We expect it to be finalized soon."

This atmosphere is also sensed in Europe. On the 31st of last month (local time), Bloomberg News reported, citing multiple sources, that the U.S. is proposing that the EU adopt export control methods targeting China. According to the report, since February, the U.S. and the EU have been exploring ways to share information and jointly impose export controls on China, using the cooperation model they applied for sanctions against Russia.

The U.S. and the EU are preparing for a high-level trade meeting on the 5th of next month, currently reviewing agendas such as joint development of digital infrastructure projects, AI roadmaps, and electric vehicle charging. It is unclear whether semiconductors will specifically be an issue. Sources say the EU considers the situations with Russia and China to be different and is not currently reviewing sanctions or export controls against China, but there is room to consider controls on products that could enhance China's military capabilities.

Japan, the EU, and others receiving the U.S. request are expected to be examining the impact of U.S.-China tensions on their own countries. If Japan or the EU join the U.S. initiative, domestic companies will inevitably be affected. U.S. semiconductor companies are reportedly expressing dissatisfaction, saying that "it is unfair that only U.S. companies lose sales in China due to these export controls."

A representative from a Japanese semiconductor manufacturing equipment company told Nihon Keizai Shimbun, "If advanced semiconductor production in China stagnates, demand for the latest high value-added manufacturing equipment, which Japan excels in, will also weaken." In the EU, reports emerged last month that Europe is opposing U.S. pressure to prevent Dutch semiconductor equipment maker ASML from exporting deep ultraviolet (DUV) lithography equipment to China.

This content was produced with the assistance of AI translation services.