China has warned of severe economic retaliation against Japan if it further restricts chipmaking equipment sales and servicing to Chinese firms, Bloomberg News reported on Monday, citing people familiar with the matter.
The report said that Toyota Motor privately told Japanese officials that Beijing could react to the curbs by cutting Japan’s access to minerals required for automotive production.
The report added that several Chinese officials had repeatedly outlined the position with their Japanese counterparts in recent meetings.
Toyota and the Chinese foreign ministry did not immediately respond to Reuters’ requests for comment.
Japan began restricting exports of 23 types of semiconductor manufacturing equipment, aligning its technology trade controls with a U.S. push to curb China’s ability to make advanced chips in July
