Japan’s response to Chinese economic coercion shows other democracies that resilience requires diversifying supply chains, strengthening domestic capabilities and aligning economic policy with national security.
By Jonathan Berkshire Miller
Contributing Writer
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China’s recent decision to target Japanese companies with export controls on critical minerals and “dual‑use” technologies isn’t just an escalation in Beijing’s dispute with Tokyo
This is a moment of truth for democracies that still hope to compartmentalize economic engagement with China from geopolitical security realities.Last month, Beijing placed 20 Japanese companies on a list to restrict the sale of critical materials and dual-use technologies, citing Japan's increasing "remilitarization" as a reason for the restriction
An additional 20 Japanese companies were placed on a "watch list," subject to strict license requirements prior to shipping those same critical materials and technologies
These restrictions affect key materials used for advanced manufacturing, technology and defense sectors, including the critical rare-earth elements needed for products ranging from electric motors to high-end electronic devices.This should be a wake-up call
For decades, Western policymakers have operated based upon the concept of "pragmatic engagement," i.e., that they can sustain economic relationships with China even though there is an increase in competitive activities in the geopolitical arena
There is evidence that this concept is once again gaining traction as evidenced by the successive visits to Beijing made by senior officials of several of America's closest allies in recent months — namely Canada and the United Kingdom — indicating a preference for accommodation rather than confrontation.
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Source: This article was originally published by The Japan Times
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