Although Trump administration officials have expressed willingness to mediate the Japan-South Korea trade dispute, trade experts suggested the administration -- and members of Congress -- are not currently focused on intervening.
US Approach to Technology Controls Marred by 'Little Understanding,' No Leading Voice, Panelist Says
The U.S. government lacks technical knowledge and a single, leading voice in its approach to technology competition with China, said Adam Segal, the emerging technologies chair at the Council on Foreign Relations. Segal, speaking during an Oct. 4 Brookings Institution panel about the U.S.-China technology relationship, said U.S. industries are concerned that technology policies, such as certain export controls, are being made without a full understanding of their impacts.
Japan said it allowed exports of hydrogen fluoride to South Korea in August, disputing what it called “incorrect” media reports that said Japan stopped all such the exports, according to a Sept. 27 press release from the Ministry of Economy, Trade and Industry. Japan said “certain amounts of controlled hydrogen fluoride” have been released for export to South Korea, and that it will grant export licenses for fluorinated polyimide, resists and hydrogen fluoride if the exports of those items of concern are “verified as legitimate civil transactions.” In July, Japan added restrictions on exports to South Korea of the three chemicals commonly used in smart chips and other high tech goods (see 1907010020).
The World Trade Organization on Sept. 16 released South Korea’s most recent complaint against Japan in which it requests consultations over the two sides’ trade dispute. The document, dated Sept. 11, outlines South Korea’s issues with Japan’s export restrictions on three chemicals used in the manufacturing of smartphones, TV displays and semiconductors. South Korea said Japan’s restrictions were politically motivated and “unrelated to any legitimate export control considerations.” South Korea also said Japan’s additional moves, including its decision to remove South Korea from a list of trusted trading partners, has caused “unnecessary delay” and “increased scrutiny” for products destined for South Korea. South Korea said it hopes to find a “mutually acceptable date for consultations” with Japan to address the issues.
U.S. export controls are confusing, burdensome and often place U.S. companies at a disadvantage compared with foreign competitors, the American Chamber of Commerce in Shanghai said in an Aug. 29 report.
The State Department is removing certain “lower performing radars” from the U.S. Munitions List and is extending for two years a temporary modification to Category XI, the State Department said in a notice in the Federal Register.
Almost half of companies that responded to the U.S.-China Business Council's annual survey on the business climate in China said they have lost sales in China since the trade war began. The most common reason is because of retaliatory tariffs on U.S. imports to China, according to these 100 multinational firms based in the U.S. Another third said they lost sales because of U.S. tariffs.
Japan issued statements clarifying its position under its new export restrictions against South Korea, saying certain export conditions will be tightened but others will not be impacted. The measures, which took effect Aug. 28, place restrictions on chemicals -- and other goods -- used to make computer chips and other high-tech products (see 1908020023).
Japan said it will allow “legitimate” exports to South Korea as it prepares today to remove the country from its list of trusted trading partners. During an Aug. 27 press conference, Hiroshige Seko, Japan’s minister of trade, economy and industry, repeated assertions that the move is not a “countermeasure” to any South Korean actions and is not an export embargo.
South Korean and Japanese officials will meet in Beijing this week amid the countries’ trade dispute over export controls, South Korea’s Ministry of Foreign Affairs said Aug. 16. The meeting is the first between the foreign ministers of the two sides in three years, South Korea said, and will feature the foreign minister of China as well. South Korea also said it is trying to hold separate bilateral talks with both Japan and China “on the sidelines” of the meeting in Beijing. The meetings, which South Korea said will take place Aug. 20-22, come as both Japan and South Korea are entrenched in a trade dispute dating back to July 1, when Japan announced restrictions on exports to South Korea involving chemicals needed to make computer chips and other high-tech goods (see 1907010020).