China has threatened to take economic retaliation against Japan if it restricts exports of semiconductor manufacturing equipment.

The United States has restricted the export of semiconductors and semiconductor manufacturing equipment to China, and has asked several countries, including Japan, to also restrict exports of semiconductor-related products to China. Meanwhile, it has been reported that China has told Japan that it will take economic retaliation measures if it continues to restrict exports of semiconductor-related products.

China Warns Japan of Retaliation for Possible New Chip Curbs - Bloomberg
https://www.bloomberg.com/news/articles/2024-09-02/china-warns-japan-of-retaliation-over-potential-new-chip-curbs

The United States regards China's semiconductor development and AI research as a military threat and strictly restricts the export of high-performance semiconductors used in AI research and semiconductor manufacturing equipment essential for semiconductor manufacturing. These restrictions are not limited to the United States, and in April 2024, it was reported that the U.S. government is asking countries such as Japan, South Korea, and the Netherlands to stop providing technical support to China.

The U.S. government is asking Japan, South Korea and the Netherlands to tighten export controls to China, including halting the provision of technical services to Chinese factories - GIGAZINE

Furthermore, it was reported in July 2024 that the United States notified Japan and the Netherlands that it would impose the most stringent trade restrictions if China continued to have access to advanced semiconductor manufacturing technology.

The United States plans to further strengthen semiconductor technology restrictions on China - GIGAZINE

According to information obtained by the overseas media outlet Bloomberg from an anonymous source, a high-ranking Chinese official met with the Japanese side and expressed the position that 'if Japan further restricts sales of semiconductor manufacturing equipment to Chinese companies, we will take severe economic retaliatory measures against Japan.' The specific content of the economic retaliatory measures that China is considering is unknown, but there is also information that 'Toyota has informally told Japanese government officials that 'exports to Japan of important minerals necessary for automobile production may be blocked.''

In addition, China has been restricting the export of gallium and germanium, which are necessary for semiconductor manufacturing, since July 2023. It has been found that the prices of gallium and germanium have risen by about 1.5 times in one year due to these export restrictions, and there are concerns that this will affect the semiconductor supply chain.

China's export restrictions on gallium and germanium have caused prices to rise 1.5 times in one year - GIGAZINE