Bloomberg News, an anonymous news source, alleges that China is attempting to pressure the Japanese government not to ban the export of machinery and chip-making materials to China. Otherwise, Japan may retaliate by cutting off raw materials for the automotive industry in response.
The United States government is also pressuring both the Japanese and Netherlands governments to stop exporting chip-making machinery to China. This has led to the semiconductor industry in China being unable to purchase EUV technology machines. While they were able to purchase DUV machines previously, the pressure is escalating to the point where they cannot even export parts for machines already sold in recent times.
One strategy that the Chinese government has employed in the past is setting quotas for the export of rare earth minerals, which are essential materials for producing electronic devices and magnets used in motors and machinery. Limiting these quotas has been a point of contention in global trade organizations, ultimately leading China to abolish the quota system in 2015.
TLDR: China pressures Japan and the Netherlands to halt machinery exports, potentially leading to repercussions if not complied with. Previous strategies such as setting rare earth mineral quotas have caused tensions in global trade.
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