How Will New US Sanctions Against China Affect Japan?
Date
11/26/2024 12:28:05 AM
(MENAFN- AzerNews)
By Alimat Aliyeva
The tightening of U.S. economic pressure on China threatens the
interests of Japanese Semiconductor equipment manufacturers,
Azernews reports.
The expected increase in U.S. economic pressure on China,
especially if Donald trump wins the 2024 presidential election, may
seriously affect the interests of Japanese electrical engineering
companies, particularly those involved in producing semiconductor
equipment.
Managers at leading Japanese companies in the industry warn that
new U.S. sanctions are likely to have a negative impact on the
business of semiconductor equipment manufacturers. The management
of one of the largest corporations, Kokusai Electric, states that
by March 2026, China's share of its exports will decrease from the
current 50% to 30%. Tokyo Electron, another major Japanese player
in this field, is making similar predictions.
Under pressure from the administration of President Joe Biden,
the U.S. government has already restricted the supply of
cutting-edge technologies to China, particularly those used in
semiconductor manufacturing. However, Nikkei reports that in the
future, these restrictions may extend to older models of equipment.
This would create additional challenges for Japanese and Dutch
manufacturers, who control a significant portion of the global
semiconductor equipment market.
In response to the threat of new sanctions, China is actively
increasing its purchases of semiconductor equipment that could
potentially be banned. In 2023, China's share of global
semiconductor equipment imports increased from 20% to 40%, and in
the second quarter of 2024, it already accounted for 46%. At the
same time, Beijing is intensifying efforts to develop its own
semiconductor industry in order to reduce dependence on foreign
suppliers.
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