China Threatens Japan Over New Chip Curbs

• China warns Japan of severe economic retaliation if Tokyo restricts chipmaking equipment sales to Chinese firms.
• Toyota fears Beijing could cut access to critical minerals essential for automotive production.
• US pressures Japan to align with new rules, complicating semiconductor progress.
• Japan's chip-related stocks fall amid the clash, with Tokyo Electron and others affected.
• US aims for a diplomatic solution but considers using the foreign direct product rule if necessary.

Source: Bloomberg