Japan, EU Strengthen Economic Security, Lessen Reliance on China

Japan and the European Union are set to enhance their cooperation on economic security, focusing on improving the resilience of supply chains for critical materials like semiconductors. This decision emerges as both parties seek to decrease their reliance on specific countries, notably China. The leaders plan to issue a joint statement on establishing transparent, resilient, and sustainable supply chains during the Japan-EU High-level Economic Dialogue, scheduled to take place in Paris in early May.

The initiative reflects Japan’s strategic push to fortify partnerships with allies to secure stable supply chains amid rising geopolitical tensions and economic security challenges, such as Russia’s ongoing conflict in Ukraine and China’s expanding influence. The dialogue will feature key participants, including Japanese Foreign Minister Yoko Kamikawa and Industry Minister Ken Saito, alongside Valdis Dombrovskis, the European Commission’s Executive Vice President for an Economy that Works for People.

The move is partly motivated by the need to counter China’s aggressive market expansion, which includes flooding the market with low-cost semiconductors, electric vehicles, and solar panels. There is a growing concern that Beijing might leverage its economic influence to exert coercive measures on other nations.

This agreement builds on similar international efforts, highlighted by a recent meeting between Japanese Prime Minister Fumio Kishida and U.S. President Joe Biden. In their discussions, they reaffirmed a shared commitment to enhancing supply chain resilience, underscoring the global dimension of the challenge posed by China’s strategic ambitions. The upcoming dialogue in Paris represents a critical step for Japan and the EU as they work together to mitigate economic vulnerabilities and ensure a more secure trading future.