According to an editorial published by the Daily News of Japan on February 17, the United States’ big stick of protectionism harmed the interests of all countries.
The editorial pointed out that the United States last year introduced measures aimed at prohibiting semiconductor trade with China. In order to block China’s semiconductor production, the United States also required Japan and the Netherlands, which have strong strength in the field of chip equipment manufacturing, to take a unified step.
Japan, the United States and Europe are worried that China’s military technology will be further strengthened with the improvement of the level of artificial intelligence and other fields. According to the rules of the WTO, there are also situations where trade can be restricted for security reasons.
But in the digital society, many cutting-edge technologies can be used for both military and civilian purposes. If, in the name of safety and security, the scope of exceptions is expanded indefinitely, the free trade mechanism may collapse.
According to the editorial, the government can use export restriction measures as a means of defense, provided that the action is well founded and carried out under the framework of international cooperation.
For a long time, Japan and the United States have stressed the importance of rule-based economic activities, and (Japan and the United States) cannot undermine its value by itself.
In addition, it is also necessary for all parties to consider the impact of restrictive measures on the economy. About 30% of the semiconductor manufacturing equipment exported by Japan is exported to the Chinese market. Restricting exports to China will have a huge impact on enterprises and investors.
As for the types of equipment to be restricted for export, the Ministry of Economy and Industry should further study the specific contents in the future. In order to eliminate people’s concerns about protectionism, easy-to-understand explanations and a high degree of transparency are indispensable.
And China is bound to object to this. China has been exercising its influence through resources and market. The restriction measures related to chips may lead them to take countermeasures to restrict the export of rare metals and other important materials.
Major countries have established an export management framework to prevent the proliferation of military technologies. However, as the confrontation between the United States, Europe, Japan and China, Russia and other countries intensifies, such a framework is difficult to play its role.
In order not to harm the benefits brought by the free trade mechanism, it is necessary to balance security and economic activities. Japan, sandwiched between the United States and China, needs to formulate a multi-level strategy to rebuild the trade order.
Post time: Feb-21-2023