Could China's Export Ban on Dual-Use Items to Japan Affect South Korean Trade?
Synopsis
Key Takeaways
Seoul, Jan 8 (NationPress) China's recent prohibition on the export of dual-use items possessing military applications to Japan is anticipated to influence South Korea's imports and industries, as stated by the industry ministry on Thursday. The ministry has committed to implementing measures to avert a supply shortage of affected goods.
The Ministry of Trade, Industry and Resources convened a supply chain inspection meeting with relevant ministries and industrial associations to evaluate the implications of China's latest decision, according to reports from the Yonhap news agency.
On Tuesday, China's Ministry of Commerce declared an immediate ban on the export of all dual-use items that may have military applications to Japan, citing national security concerns.
Dual-use items are defined as products, software, and technologies intended for legitimate civilian uses but could also be repurposed for military objectives.
The ministry emphasized that China's action was not aimed at Korea, yet it is expected to exert a broad influence on domestic industries due to the interconnected supply chains among the three nations.
The government will maintain close communication with private industries to prevent China's recent export restrictions from leading to a shortage of industrial materials in Korea, the ministry added.
“We will diligently manage the supply and demand of these items while remaining open to all possibilities to ensure there are no interruptions to our industries and companies' production activities,” stated Vice Industry Minister Moon Shin-hak in a press release.
In the meantime, the government will enhance communication with the United States to mitigate potential conflicts related to South Korea's revision of its network law, as mentioned by the trade ministry on Thursday.
Last week, the U.S. State Department expressed “significant” concerns over a recently enacted modification to Korea's Information and Communications Network Act, which aims to tackle false and misleading online information, raising fears of possible trade tensions between the two nations.
To avert these potential conflicts, the Ministry of Trade, Industry and Resources decided to strengthen outreach efforts to the U.S. during a trade strategy meeting to minimize issues regarding non-tariff trade barriers.
During the meeting, the ministry also discussed strategies to respond to protectionist trade policies from Korea's trading partners, which includes stronger steel safeguard measures from the European Union and Canada, as well as Mexico's proposed tariff increase.