Korea, U.S., Japan to coordinate against 'weaponization' of economic dependencies

Industry

Published: 27 Jun. 2024, 17:44 Updated: 27 Jun. 2024, 18:17

Korea, U.S., Japan to coordinate against 'weaponization' of economic dependencies

Korean Industry Minister Ahn Duk-geun, far right, U.S. Commerce Secretary Gina Raimondo, center, and Japanese Industry Minister Ken Saito pose before the three countries' inaugural commerce-industry ministerial meeting in Washington on Wednesday. [YONHAP]

Top industry officials of Korea, the United States and Japan expressed concerns over the "weaponization" of economic dependencies on certain supply sources for strategic goods in an apparent warning to China.

At their first trilateral meeting on economic security in Washington on Wednesday, they also released a joint statement reaffirming cooperative responses to developing stable supply chains in key sectors like semiconductors and EV batteries.

Korean Industry Minister Ahn Duk-geun, U.S. Commerce Secretary Gina Raimondo and Japanese Industry Minister Ken Saito issued a joint statement following the Commerce and Industry Ministerial Meeting, which underscored a deepening of trilateral cooperation amid an intensifying Sino-U.S. rivalry.

The meeting was a follow-up to a landmark agreement reached by Korean President Yoon Suk Yeol, U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida during their high-profile summit at Camp David in August.

"We share concerns over the weaponization of economic dependencies on certain supply sources for strategic goods," they said in the statement.

"To address the resulting systemic vulnerabilities stemming from such dependencies, we intend to promote a level playing field through more closely coordinated efforts, including working together, and with other partners, on relevant criteria that take into account not only economic factors, but also factors linked to the Principles on Resilient and Reliable Supply Chains," they added, referring to the principles of transparency, diversification, security, sustainability, and trustworthiness and reliability.

The U.S. has been striving to work with its allies and partners to reshape global supply chains, primarily for industrial areas that could pose security risks, as the Covid-19 pandemic and other challenges have laid bare stark vulnerabilities in key supply chains, particularly those heavily reliant on Chinese manufacturing.

The three officials stressed their shared intent to leverage the trilateral ministerial mechanism to promote the development of critical and emerging technologies, and strengthen the security and resiliency of their countries' economies.

"Recognizing these two goals are intertwined, we aim to prioritize cooperation to strengthen the resilience of supply chains in key sectors, including semiconductors and batteries; and to promote the Principles on Resilient and Reliable Supply Chains," they said.

They also pointed to joint efforts to deepen coordination on export controls for advanced technologies as well as to develop international standards and ensure the "safe, secure and trustworthy" use of artificial intelligence.

In particular, they agreed to cooperate on export controls for critical and emerging technologies, "further align on Russia controls," and collaborate on outreach to countries in Southeast Asia, according to the statement.

"As part of these efforts, there is an urgency to our three sides working closely together to identify potential supply chain vulnerabilities for strategic goods that have resulted from a wide range of nonmarket policies and practices," they said.

In his opening remarks, Ahn said that the three-way meeting will set a "comprehensive and robust institutional framework" for economic cooperation encompassing industry, technology, supply chains, workforces and investment.

"Indeed, there are no better partners than Korea, the United States and Japan when it comes to advanced technologies and innovations," he said in his opening remarks.

Raimondo pointed out that at the Camp David summit, Yoon, Biden and Kishida tasked the ministers to leverage the trilateral ministerial platform to "raise our shared ambitions to a new horizon."

"We're doubling down our efforts to work together in the area of semiconductors, biomanufacturing, quantum, AI, robotics and advanced manufacturing," she said.

"Now is the time for us to align more closely than ever to continue promoting the development of these critical emerging technologies, while also working together to strengthen our supply chains and protecting our mutual national and economic security interests."

She also added a global dimension to the three-way cooperative undertaking.

"We have to work together to the benefit not just of our countries, but of the world … The safety and security of the world," she said.

Pointing to a "more complex" international situation, Saito underlined the need to work with like-minded countries on supply chains and other issues.

BY PARK EUN-JEE, YONHAP [park.eunjee@joongang.co.kr]