Team ELEBG – Electronics Buyer’s Guide
Japan has introduced new export controls targeting critical technologies such as semiconductors and quantum computing, raising concerns in China about potential disruptions to trade. These measures, set to take effect by May 2025, will require companies to obtain export licenses for sophisticated microchips, lithography machines, and cryocoolers—all essential for the development of quantum computing.
The goal of Japan’s new restrictions is to prevent the diversion of these technologies for military use, such as improving the precision of guided weapons or aiding in the decryption of sensitive data through quantum computing. This decision comes amid increasing scrutiny over the re-exportation of Nvidia semiconductors to China, especially for AI applications.
As part of the tighter controls, Japan is expanding its entity list, adding 42 more foreign companies and organizations. This brings the total number of Chinese entities under scrutiny to about 110. These restrictions have triggered reactions from Beijing, which has expressed concerns about the possible disruption of trade flows and the broader economic impact.
China has also been actively engaging with US allies, seeking diplomatic stability in light of potential policy shifts under the US administration. Despite ongoing tensions, there have been informal exchanges between China and Japan, including a possible invitation for Japanese Prime Minister Shigeru Ishiba to attend the Asian Winter Games in February.
While Japan has benefited from China’s demand for semiconductor manufacturing equipment, the new export controls could potentially strain this trade relationship, especially with US pressure on high-tech goods exports to China.
