The United States has again imposed new export control sanctions targeting China. But it was not China that suffered, but Japan. Lithography equipment manufacturers are in shock over American manipulations. Printing graphics equipment may remain gathering dust at enterprises, as its access to China is blocked.
Why Japan Is Losing Revenue Due to Sanctions Against China
It’s all about technology. Fearing to transfer modern technological equipment to China, the Japanese have established production of morally outdated machinery. The demand was for equipment operating on 10- and 14-nanometer chips. Although the Japanese themselves have long been using 8-nanometer technologies in their own country and in the USA. But new sanctions have banned the export of even morally outdated lithography machines. Considering that Japanese manufacturers sell about 25% of their products to China, the blow to them has been significant.
There is a positive side to all this, which, even after a couple of years, will demonstrate the inefficiency of economic sanctions. The Chinese have decided to master the latest technologies without Japanese assistance. This poses a risk that Japan will permanently lose its market for such equipment in China. Notably, Americans never compensate Japanese for their financial losses. And the Japanese leadership will smile serenely and take pride in the fact that the USA is their mutually beneficial partner.
