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.

One fear in Tokyo is that Beijing could react to new semiconductor controls by cutting Japan's access to critical minerals that are essential for automotive production

China threatened a severe economic retaliation against Japan if Tokyo persisted in restricting the sale of chipmaking equipment to Chinese firms. For months the US has pressured Japan to curb the ability of firms to sell advanced chip tools to China in a bid to blunt Beijing’s progress in key industries, including artificial intelligence.

Japan’s export controls focus on the chip sector and follow US efforts to weaken China's technology production.

China warned of severe economic retaliation against Japan if further restrictions on chipmaking equipment are imposed. Toyota reportedly expressed concerns about potential disruptions in mineral access for automotive production.

China has threatened Japan with harsh economic sanctions if Tokyo further limits the sale and servicing of chip-making equipment to Chinese companies.

China has threatened severe economic retaliation against Japan if Tokyo further restricts sales and servicing of chipmaking equipment to Chinese firms, complicating US-led efforts to cut the world’s second-largest economy off from advanced technology.

Toyota privately told officials that Beijing could react to new controls by cutting Japan’s access to critical minerals for car production, sources say.

China has warned of strict economic reprisal against Japan if the country further curbs sales and servicing of chipmaking tools to Chinese companies, Bloomberg News reported. Senior Chinese officials have reiterated this stance in recent meetings with their Japanese counterparts,

China has warned Japan of severe economic consequences if Tokyo further restricts semiconductor sales and servicing to Chinese companies, Bloomberg reported. This threat comes amid intensifying US-led efforts to restrict China’s access to advanced technology.