Japanese companies operating in China are increasingly concerned about being caught in the middle of the escalating conflict between Beijing and Washington over trade and technology, according to a business group representing them.
Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China. “[We] hope when the Ministry of Commerce is studying and drawing up the ‘unreliable entity list’ … [it] can assure Japanese companies they will not be targeted by these countermeasures between China and the US … and ensure the transparency of the system while listening to advice from the Japanese companies,” the white paper said.
Chip makers in Japan are already feeling the chill after the US Commerce Department banned all exports to Chinese firm Huawei Technologies for any semiconductors developed or produced using US software or technology. “[These] companies have no idea when and by how much the tariffs will be raised and how long this will last, and the technology export bans will also have an impact on Japanese companies, though it remains unclear how big it will be,” Donoue said, adding that “without certainties and transparency, it will be very difficult to make any plans”.