Secret Agreement: US and Japan Plot to Control Chip Exports to China!

As the US presidential election draws near, the race for supremacy in tech exports is heating up between the US, Japan, and China. The White House is pushing for new export controls that would impact the global tech industry, particularly China’s chip sector. Here are the key points shaping this intense battle:

1. US-Japan Deal: The US and Japan are on the brink of a deal to limit tech exports to China, despite Tokyo’s concerns about potential retaliation from Beijing. This agreement would require non-US companies to obtain licenses before selling key products to China’s tech sector.
2. Intense Negotiations: Biden administration officials have engaged in months-long discussions with Japanese and Dutch counterparts to establish export control regimes that would safeguard their companies from US restrictions. These talks aim to prevent Japanese and Dutch firms from falling under the US “foreign direct product rule.”
3. Fear of Chinese Retaliation: Both Washington and Tokyo are wary of Chinese backlash, particularly in terms of critical mineral exports like gallium and graphite. The Chinese government has threatened to block these vital resources from reaching Japan if it adopts US-imposed export controls.
4. Impact on Global Tech Giants: The US restrictions target loopholes in current rules and are aimed at curbing China’s access to essential chipmaking tools. Key players like ASML in the Netherlands and Tokyo Electron in Japan could be significantly affected by these limitations.
5. Strain on US-Japan Relations: Despite progress in negotiations, tensions persist between the US and Japan. The impending US decision to block a major takeover deal involving Nippon Steel has further strained relations and has heightened Tokyo’s concerns about Chinese retaliation.

The stakes are high as the US, Japan, and China navigate this complex landscape of tech exports and geopolitical maneuvering. The outcome of these negotiations could have far-reaching implications for the global tech industry. It remains to be seen how these countries will navigate the delicate balance between economic interests and political alliances in the tech sector.