American lawmakers are demanding that Japan tighten restrictions on the supply of chips to China

Key US lawmakers have urged Japan to tighten restrictions on sales of chip-making equipment to China. They warned that if Tokyo does not take any action, Washington may introduce its own restrictions on Japanese companies.

This is reported by RBC-Ukraine with reference to Bloomberg.

Leading Republicans and Democrats in The House Committee on China Affairs outlined their concerns in an Oct. 15 letter from Japan's ambassador to the United States, Shigeo Yamada, which was seen by the agency.

They rejected arguments that the restrictions had a significant negative impact on chip equipment companies such as Tokyo Electron Ltd. The letter mentions the increase in the prices of shares of Tokyo Electron, ASML Holding NV, Lam Research Corp. and Applied Materials Inc., as well as chip manufacturing subsidy programs in the U.S. and the European Union.

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The lawmakers' letter also highlighted concerns about China's ability to produce less advanced processors.

The letter said that without multilateral efforts to address these issues, the supply of US, Japanese and Dutch chip manufacturing equipment would give Beijing “a functional veto over our countries' ability to produce our weapons systems and modern consumer goods at the required level.”

< Although lawmakers would prefer a multilateral solution, they stressed that the US has other options. One of them — this is the application of the so-called Foreign Direct Production Rule (FDPR), which allows Washington to regulate goods produced abroad even with the use of the most insignificant American technology.

The other day, the United States of America imposed sanctions against three companies, including two Chinese ones. They are suspected of being involved in the development and production of a Russian drone.

However, the US authorities do not accuse American companies whose products Russia uses in the production of missiles of violating export controls. Their components continue to be supplied to Russia through intermediaries.