Chinese representatives have told Toyota that the flow of raw materials needed by the automotive industry can be cut off.
China threatens Japan with severe economic sanctions if the country decides to tighten export restrictions related to microchips.
The matter was reported on Monday by the news agency Bloomberg, which has interviewed anonymous sources familiar with the situation.
In meetings with Toyota, Chinese representatives had pointed out that Beijing could react to new chip export restrictions by cutting off the flow of raw materials needed by the automaker.
According to Bloomberg, numerous Chinese officials have repeated this warning in meetings with Toyota.
Small yard, high fence
In July, Japan, together with the United States, began to restrict the export of equipment needed to manufacture microchips to China.
The goal of the countries is to weaken China’s ability to manufacture advanced microchips, which can be used in weapons technology, for example.
The United States has adopted the so-called “small yard, high fence” approach to China’s export restrictions. This means that there are few restrictions but they are very strictly enforced.
– China has always been committed to maintaining the safety of global production chains. China has also always introduced fair, reasonable and non-discriminatory export restrictions, commented a spokesman for the Chinese Ministry of Foreign Affairs on Monday Mao Ning when asked about it.
Source: Reuters