"Implement the Same Export Controls as China"... US Pressures Allies Including Japan and EU (Comprehensive)

[Image source=AP Yonhap News]

[Asia Economy reporters Jeong Hyunjin and Lee Dongwoo in Sejong] The Biden administration in the United States is reportedly pressuring its allies, including Japan, to adopt semiconductor export controls targeting China, which it announced earlier last month. It is also known that the U.S. is pressuring the European Union (EU) to implement similar export control measures against China. There is speculation that the U.S. may also request Korea and Taiwan, members of the CHIP4 alliance, to join in isolating China and tightening restrictions. However, the Korean government has stated that it has not yet received any specific requests from the U.S.

On the 2nd, Nihon Keizai Shimbun cited a Japanese government official reporting that the Japanese government is receiving such demands from the U.S. and is coordinating internally. It is said that Japan is discussing which parts of the U.S. export control measures can be accepted and applied, while also monitoring the trends of the EU and Korea.

The measures Japan is reviewing are the semiconductor export regulations announced by the Biden administration on the 7th of last month. The U.S. has banned 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.

Nihon Keizai Shimbun reported, "The U.S. is urging its allies 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 an early agreement through consultations with related governments."

[Image source=EPA Yonhap News]

The U.S. has repeatedly mentioned that it wants its allies to join its export control policy against 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 allies participate in the regulations," adding, "Not only I, but also the Secretary of Commerce and the National Security Council (NSC) advisors are all in communication. We expect it to be finalized soon."

This sentiment is also being sensed in Europe. On the 31st of last month (local time), Bloomberg News reported, citing multiple sources, that the U.S. is proposing the EU adopt similar export control measures against China. According to the report, since February, the U.S. and EU have cooperated on sanctions against Russia, sharing information and seeking ways to jointly impose export controls on China.

The U.S. and 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.

Regarding this, a Ministry of Trade, Industry and Energy official said, "We have not yet received any specific requests from the U.S. regarding semiconductor export controls targeting China."

Japan, the EU, and others who have received U.S. demands are expected to examine the impact of the U.S.-China conflict on their own countries. If Japan or the EU join the U.S. initiative, domestic companies will inevitably be affected. U.S. semiconductor companies reportedly have expressed dissatisfaction, saying, "It is unfair that only U.S. companies lose sales in China due to these export controls."

A representative of 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 case of the EU, reports emerged last month that Europe is opposing U.S. pressure to prevent the Dutch semiconductor equipment company ASML from exporting deep ultraviolet (DUV) lithography equipment to China.

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