Japan Joins US Sanctions On Tech Exports to China. Will Japan's Economy Suffer?

Introduction good day and welcome to SEO bricks Insight where we look at what's really going on in the world of the Bricks now it's been reported by Bloomberg that China's threatening Japan with economic sanctions in the event that Japan introduces new restrictions on the export of equipment for the production of semiconductors so what will the potential response be from Beijing well in July of this year the Japanese government announced plans to tighten controls on the export of semic conductor manufacturing equipment in order to limit the possibility of China purchasing such products now the export control list includes equipment that's used in the formation and testing of micro circuits in particular equipment related to euv lithography which also allows for the tracking of complex circuits in the most modern chips Japan like a good little vassel is doing exactly what the Americans tell them to do as usual now it's worth noting that the Japanese authorities rarely act independently but act slavishly to the Japan rarely acts independently towards China and its policies are set by the USA commands of the United States even when it's obviously against the country's own interest but when the US wants to impose restrictions on the sale of sistic equ equipment to micro circuits to Japan uh from Japan for production to China Japan just goes along with that I mean the US is Keen to impede the advancement of Chinese companies in the semiconductors sector thereby reducing the competitive threat posed by them of course like King Cano attempting to hold back the ti back in history they consistently discovered that these efforts are doomed to failure in fact so just like the sanctions they've been uh on Russia there've been a complete failure and so will these attempts to uh stop uh China getting the technology I mean they may slow down China's progress but they'll not stop making breakthroughs I me in oober last year the United States introduced export controls on semiconductors used in some supercomputers and artificial intelligence system which could have the potential for use in military applications targeting China well pretty much everything's got a military application as far as the US is concerned a few days ago the US government announced new controls on advanced technology now including quantum computers now the US and China are currently at the Forefront of efforts to explore the potential Quantum Computing which some commentators believe could transform the world as we know it now the initial trigger for the trade dispute between the US and China was allegations that Chinese it companies whose competitiv in the global market has increased significantly wor spying and stealing the technology this has given rise to significant concern amongst developed countries now before I continue I'd like to make an appeal if you like and enjoy my videos you can help me find my channel and the website seob bricks insight.com to further develop it you can do this by making a small donation which is done by clicking on the thanks button at the bottom of the video screen now everybody who donates does get a personal thank you from me and I'm thanking you all now now USA pushes The Netherlands and Japan to impose sanctions on chip making equipment on China ALG Rema who's the head of the China Center the Synergy Corporation states that the US is encouraging its allies to participate in the Tade conflict that started by Donald Trump back in 2018 now they're trying to pull in other countries including the Netherlands and Japan in this dispute and they're exerting additional pressure on them obviously the US is using its normal taxes of bullying countries that it feels if they ban them from using the dollar they're going to fall in line consequently Japanese companies are now facing strong competition from chiny Rivals I mean according to Afghan smof uh the new digital Technologies Advanced the US is implementing increasingly stringent restrictions on China trying to stop them catching up I mean they're creating new export licensing requirements for us companies doing business with Chinese customers and this has prompted Chinese companies to develop their own production capabilities and they now actually exort microchips rather than just importing them I mean by the end of this year On Target to reach revenues of 40 billion with the Gap in with world leaders narrowing to a low level I mean China has the op option of responding to the restrictions in a way that is benefit to its own interest and will certainly damage uh the US's interest in uh microchips and uh semiconductors I mean everybody knows that China is the world's largest exporter of raree metals and in 2023 it accounted for 70% of global exports of those which are used in the production of chips and complex electronics and even things like Gallum it controls 94% of the exports as smov says China is basically able to limit the supply of raree metals to Japan since 2010 so they basically since then the Japanese have tried to reduce their Alliance on China but that isn't what it's and there's no particular success so all China needs to do if uh Japan decides to take these rality measures Japanese electronic and automotive companies vulnerable to Chinese sanctions it's just do the in kind I mean in particular companies like Toyota will be affected and part particularly if it loses uh access to essential minerals and that provides a significant challenge to all the Japanese Automotive and electronics Industry manufacturers I mean these industries are a vital part of the Japanese economy so obviously the Japanese government's going to try and avoid retal sanctions I mean you you got to understand that Japan's Reliance on chain is considerably greater than that of the United States I mean the figures grown from 10% in the early 2000 to 24% the total turnover for example the United States accounts for just over 18% of Japan's trade Japan's automakers make up 19% of the Chinese market and it's the largest foreign player after Chinese Brands and well ahead of uh the European Brands like the Germans Japanese auto brands largest foreign manufacturers in China now ranga has stated that Chinese rality restrictions will have an immediate impact on Japan's trade turnover on its elect electronics Industry however the example of Russia demonstrates that sanctions and restrictions result in a significant economic losses and challenges for the countries that Implement them so given China's uh Japan's increasing Reliance on China CH toy is going to have to exercise caution and consider when it decides on which restrictions on chip Imports to China because if it doesn't it's going to have a serious adverse impact on its an economy it's unlikely that a list of measures will be as severe as those taken by the United States which has been attempted for several years to stop China's uh growing technological expansion so it's probably what the Chinese uh Japanese authorities will do it's attempt to make a statement and say that they're going going to be uh putting measures in but they're not really going to be uh that effective I mean Japan just is not ready for a fight uh as it wasn't with Russia over oil and LNG and coal it's certainly not going to uh get into a fight with China where it's not going to succeed I mean whatever they do the export from uh microchips to China will continue Japanese manufacturers of microchips and related are going to have to divers fight their sales China they'll probably start selling to India Vietnam and Malaysia boost their sales and of course they'll then put sell them on as third parties through to uh to China so just establishing new trade relations and projects and takes time and Rel new resources but given the current economic challenges facing Japan and the recession that is currently going through plus the other numerous issues that dogs their Japanese economy it's not an a strong position and a trade War uh with its largest uh trading part is going to really seriously damage their economy anyway we'll see if the Japanese authorities are prepared for such a scenario we'll see if the Japanese government has the stomach to infl more pain on its leading exporters and do further damage to its economy just to benefit its Imperial Masters in Washington anyway thank you for watching please like And subscribe if you enjoyed this video video you can help me fund the channel and the website SEO Bricks insight.com by clicking on the thanks button at the bottom of the screen don't forget the comment section and I'll look forward to answering your comments