The inaugural trilateral meeting of the trade and industry ministers from the United States, Japan, and South Korea was held on Wednesday (June 26th) in Washington, D.C. The meeting focused on collaborating in the economic security realm to address the growing influence of China in the global economy, particularly emphasizing the establishment of more flexible supply chains that include semiconductors and critical minerals.
In attendance were Gina Raimondo, the U.S. Secretary of Commerce, Saito Ken, the Japanese Minister of Economy, Trade, and Industry, and Duk-geun Ahn, the South Korean Minister of Industry, Trade, and Resources.
According to a joint statement released after the meeting, the three countries discussed utilizing this trilateral mechanism to promote the development of key and emerging technologies, as well as enhancing economic security and supply chain resilience. They expressed a commitment to prioritize cooperation in establishing more resilient supply chains in critical areas such as semiconductors, batteries, and critical minerals.
During the meeting, the three countries expressed strong concerns about China’s weaponization of supply chains. They highlighted the urgent need for close cooperation to identify potential vulnerabilities in critical material supply chains and address systemic weaknesses arising from such dependencies. They emphasized that semiconductors, clean energy, critical minerals, cybersecurity, and artificial intelligence are strategic priority areas.
Later that day, Secretary Raimondo of the U.S. Department of Commerce and Minister Saito of Japan also held the fourth U.S.-Japan Commercial and Industrial Partnership (JUCIP) ministerial meeting.
Throughout the meeting, both sides expressed deep concerns about China’s economic coercion and non-market policies and practices. They believed that these policies and practices have led to overcapacity, posing a severe threat to the economies and national security of other countries. They agreed to jointly take action to enhance the resilience of strategic supply chains by strengthening supply and creating demand.
They also pledged to collectively address China’s export control issues and strengthen cooperation in the supply of gallium, germanium, and graphite. In retaliation for high-tech export controls imposed by Western countries including the U.S., China has strengthened export controls on key semiconductor materials such as gallium, germanium, and graphite since August last year.
In recent years, the global disruptions caused by COVID-19 and the prolonged conflict between Russia and Ukraine have severely disrupted global industrial and supply chains, dealing a heavy blow to the economies of various countries. Economic security and “risk mitigation” have become the policy focus of Western countries led by the United States, with decoupling from China being the most urgent and primary goal.
In March of last year, the U.S. Office of the Director of National Intelligence released the “Annual Threat Assessment” report, indicating growing U.S. concerns about China potentially using its dominant position in global supply chains as an additional weapon to strengthen its political and military power.
The report highlighted China’s dominant position in supply chains including semiconductors, major minerals, batteries, solar panels, and pharmaceuticals. It pointed out that if China utilizes its dominant position to seek political or economic benefits, it would pose significant risks to U.S. and Western manufacturing and consumer industries.