Why Japan's Chip Makers Can't Quit China – Japan’s Semiconductor Struggle Between the U.S and China.

Why Japan's Chip Makers Can't Quit China – Japan’s Semiconductor Struggle Between the U.S and China.
Japan is deepening its alliance with the United States to limit high-tech exports to China, particularly in the semiconductor industry. Following recent talks between U.S. President Joe Biden and former Japanese Prime Minister Fumio Kishida, Japan has committed to restricting semiconductor manufacturing equipment sales to Chinese firms. This decision underscores the complex web of geopolitical and economic factors influencing Japan's actions. On one hand, Japan relies heavily on China, its largest trading partner, with trade between the two nations reaching $266.25 billion in recent years. Japan's semiconductor companies, including Tokyo Electron and Kokusai Electric Corp, generate a substantial portion of their revenue from China, highlighting the economic risks of these new export controls.