Toeing US line on tech spells gloom for Japan

Barring chip sales to China devastates exporter's companies, observers warn

In following the United States' lead of so-called tech decoupling from China, Japan stands only to damage itself, and any curbs on chip exports are likely to devastate Japanese high-tech companies and hinder the development of the chip industry, analysts say.

Tokyo will introduce new export controls this spring, Kyodo News Agency of Japan reported, citing several unidentified government sources. Under revised government regulations, exports of advanced chip equipment will need to be approved by the trade ministry, the report said.

The move comes days after the US purportedly reached an agreement with Japan and the Netherlands to tighten their export controls on chipmaking equipment and technology to China, but exactly what equipment Japanese companies would be banned from selling has yet to be made public.