Export restrictions in the Japan-China-U.S. Trilateral relationship

Abstract

The U.S., in its current offensive against Chinese high-technology industries, is employing export restriction measures developed during the Cold War as weapons for Western economic warfare against the Communist bloc. This study reviews how the export control regime was created, as well as how Japan and China became involved in economic warfare. Based on the hypothesis that the scope of export restrictions is determined by the perception of the target countries’ threat, foreign pressure, and foreign availability, this study explores factors that influence the scope of restriction in the case of Sino-Japanese trade. The author found that export restrictions justified by security concerns were often used to pursue industrial policy goals. In most circumstances, such restrictions turned out to be ineffective in achieving aims and were painful to implement.

Notes

1 Jinrongjie (https://finance.jrj.com.cn/2018/04/20135924422473.shtml), April 20, 2020.

2 Kwon (2007) argues that Prime Minister Kishi wished to develop trade with China even after the incident, but faced strong opposition from Taiwan, pro-Taiwan Chinese in Southeast Asia, and the U.S. Thus, he could not take further steps to fix the relationship with China.

3 The following cases are drawn from Marukawa (2013).

4 WTO, “DS431: China—Measures Related to the Exportation of Rare Earths, Tungsten and Molybdenum.” (https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds431_e.htm) Accessed on August 28, 2020.

5 “Commerce Addresses Huawei’s Efforts to Undermine Entity List, Restricts Products Designed and Produced with U.S. Technologies,” Press Release, U.S. DOC, May 15, 2020.

Additional information

Funding

This study was funded by Contemporary China Research Base, University of Tokyo.