U.S., Japan, Netherlands Reach Chip Accord against China: Reports

Economy Technology

Washington, Jan. 27 (Jiji Press)--The United States, Japan and the Netherlands agreed on Friday to impose a certain restriction on the sale of semiconductor manufacturing equipment to China, U.S. and European media reported.

The move is aimed at countering China's moves to use advanced technologies for military purposes, and expected to deal a heavy blow to China, which relies on foreign makers for semiconductors.

The agreement represents an important milestone for the administration of U.S. President Joe Biden, which is seeking to form a multilateral framework to contain China, but looks certain to draw strong opposition from Beijing, observers said.

Related Japanese companies, such as Tokyo Electron Ltd. <8035> and Nikon Corp. <7731>, are likely to be forced to make difficult decisions.

Having in mind geopolitical risks such as a possible conflict over Taiwan, the Biden administration decided in October last year to significantly strengthen its restrictions on exports to China of semiconductors and chip manufacturing equipment that can be converted into weapons of mass destruction.

[Copyright The Jiji Press, Ltd.]

Jiji Press