China Warns of Retaliation Against Japan Over Chip Restrictions

China has threatened severe economic retaliation against Japan if it further restricts the sale and servicing of chipmaking equipment to Chinese firms, according to a report by Bloomberg News on Monday. The report cites sources familiar with the matter.

The report also states that Toyota Motor has privately informed Japanese officials that Beijing could retaliate by limiting Japan's access to minerals crucial for automotive production. This information was reportedly conveyed by Chinese officials to their Japanese counterparts during recent meetings.

Both Toyota and the Chinese foreign ministry have yet to respond to requests for comment from Reuters.

In July, Japan began restricting exports of 23 types of semiconductor manufacturing equipment, aligning its technology trade controls with the United States' efforts to curb China's ability to produce advanced chips.