China Warns Japan of Economic Retaliation

China has issued a stern warning to Japan, threatening severe economic retaliation if Tokyo imposes further restrictions on semiconductor sales and services to Chinese firms. This warning comes amid ongoing U.S. efforts to limit China's access to advanced technology, prompting Japan to align its technology controls with U.S. initiatives. Toyota Motor Corp. has expressed concerns that Beijing might respond to new semiconductor controls by cutting off Japan's access to critical minerals essential for its automotive industry. The potential disruption of mineral supplies poses a significant risk for Japan, especially for companies like Toyota and Tokyo Electron, which are heavily involved in semiconductor production. This situation echoes a previous incident in 2010 when China suspended rare earth exports to Japan following a diplomatic clash. The discussions between U.S. and Japanese officials include strategies to secure critical mineral supplies amid these rising tensions.