US, Japan Making Progress on Chip Export Controls, Officials Say

U.S. and Japanese officials this week said they are hopeful the two countries will soon align their semiconductor export controls against China, adding to optimism within the Commerce Department that U.S. allies will eventually agree on the chip restrictions. The U.S. and Japan have made “progress” during recent talks, Japanese Ambassador Koji Tomita said, adding that they could reach more concrete results shortly.

“We are on course for very close coordination on this issue,” Tomita said during an event this week hosted by the Center for Strategic and International Studies. “I think we are looking forward to making progress on this issue in the coming weeks.”

Tomita’s comments came days after Japanese Prime Minister Fumio Kishida met with President Joe Biden -- where the two discussed national security issues surrounding critical and emerging technologies, including semiconductors (see 2301130058) -- and about a week after U.S. and Japanese officials discussed export controls with executives from IBM and Japanese chip manufacturer Rapidus (see 2301060042). National Security Council official Kurt Campbell said the Biden administration is keenly aware of the “importance” of Japan also implementing the restrictions, which the U.S. announced in October in a bid to restrict China’s ability to acquire advanced computing chips and manufacture advanced semiconductors (see 2210070049).

“I think it would be fair to say that when President Biden raised the issue with Prime Minister Kishida, he indicated that he was studying it carefully and that he would be responding appropriately,” Campbell said, adding that the two countries have held “extensive expert-level and government-level discussions” on the controls. “I think we are satisfied and believe that the consultations have been very productive.”

Although Tomita was optimistic, he also said the controls are a “very complicated issue” and stressed they need to be coordinated closely with the chip industry. “Whatever we do in this area has to make business sense, otherwise the outcome will not be sustainable,” he said. “I think we are making very careful progress, looking at both technical as well as the economic side of this issue.”

Tomita called China “the biggest strategic challenge we both share” and said the two leaders spoke about confronting “certain aspects of Chinese behavior.” But he also said there was a “recognition that both of us need to strike the right balance between responding to the challenges posed by China and ensuring stability in our respective relations with China.”

Biden and Kishida also discussed Chinese President Xi Jinping, “his new government and his new powers, how all of this would play out,” Campbell said. “I think both leaders did concur that the challenges that they face in China are difficult.” He also said there is a “real harmony in views of both the risks and possibilities of China.”

Biden’s meeting with Kishida came as the U.S tries to convince allies, including the Netherlands and South Korea, to impose similar export restrictions on sensitive technologies destined to China. Dutch officials this month continued to say they are open to the measures but have so far declined to publicly commit to them (see 2301170015).

Bureau of Industry and Security Undersecretary Alan Estevez said last month he remains confident U.S. allies will impose similar export restrictions against China (see 2212060059). The agency on Jan. 17 closed its public comment period for feedback on areas and priorities for U.S.-Japan export control cooperation (see 2211300003).