Reference News Network reported on February 18, Japan’s "Daily News" published an editorial on February 17, pointing out that the stick of protectionism in the United States harms the interests of all countries.
The editorial pointed out that last year, the United States introduced measures aimed at prohibiting semiconductor trade with China, and in order to block semiconductor production in China, the United States also asked Japan and the Netherlands, which are strong in the field of chip equipment manufacturing, to take a unified step.
What worries Japan, the United States and Europe is that China’s military technology has been further strengthened with the improvement of artificial intelligence and other fields. According to WTO rules, there are cases 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 security, the scope of exceptions is expanded endlessly, the free trade mechanism may collapse.
The editorial believes that the government can use export restrictions as a means of defense, but only if the move is well-founded and carried out within the framework of international cooperation.
For a long time, both Japan and the United States have emphasized the importance of rule-based economic activities, and (Japan and the United States) cannot destroy its value by itself.
In addition, it is necessary for all parties to consider the impact of restrictive measures on the economy. About 30% of Japanese semiconductor manufacturing equipment is exported to the China market. Restricting exports to China will have a great impact on enterprises and investors.
The Ministry of Economy, Trade and Industry should further study the specific contents of what types of equipment are restricted for export. In order to eliminate people’s concerns about protectionism, easy-to-understand explanations and high transparency are indispensable.
And China is bound to object to this. China has been exercising its influence with resources and markets. Restriction measures related to chips may lead them to take countermeasures to restrict the export of important materials such as rare metals.
Major countries have established export management frameworks to prevent the proliferation of technologies that can be converted into military applications. However, with the intensification of confrontation between the United States, Europe and Japan and countries such as China and Russia, it is difficult for such frameworks to play a role.
In order not to damage the benefits brought by the free trade mechanism, it is necessary to balance security and economic activities. What Japan, sandwiched between the United States and China, should do is to formulate a multi-level strategy to rebuild the trade order.