China warns Japan of retaliation over potential new chip curbs: Report

China has warned severe economic retaliation against Japan if it further restricts sales and servicing of chipmaking equipment to Chinese firms, Bloomberg News reported on Monday, citing people familiar with the matter.

Toyota Motor privately told Japanese officials that Beijing could react to the curbs by cutting Japan's access to minerals required for automotive production, the report said.

Several Chinese officials had repeatedly outlined the position with their Japanese counterparts in recent meetings, the report added.


Toyota and the Chinese foreign ministry did not immediately respond to Reuters' requests for comment.

Japan began restricting exports of 23 types of semiconductor manufacturing equipment, aligning its technology trade controls with a U.S. push to curb China's ability to make advanced chips in July.