China, Japan, South Korea Strengthen Ties Ahead of US Tariffs

China, Japan, and South Korea held a trilateral Economic and Trade Ministers' Meeting in South Korea on March 30, just days before the US announced additional tariffs. The meeting, which was characterized by a cooperative atmosphere, underscored the three nations' shared interests in maintaining stable supply chains and advancing regional economic integration.

According to a publication made through Weibo by Yuyuan Tantian, a social media account affiliated with CCTV, China, Japan, and South Korea discussed semiconductors ahead of the US tariffs, aligning to mitigate the impact. 

A key outcome of the meeting was a unanimous agreement to enhance supply chain cooperation and engage in dialogue on export controls. Japan and South Korea expressed interest in importing semiconductor raw materials from China, while China sought to secure chip products from its neighbors.

At the same time, discussions included accelerating negotiations on a China-Japan-South Korea Free Trade Agreement (FTA), which would build upon the existing Regional Comprehensive Economic Partnership (RCEP). The three countries view deeper trade integration as a strategic hedge against the uncertainty brought by US protectionist measures.

Navigating Global Trade Challenges

The ministers collectively affirmed their support for a rules-based, transparent, and non-discriminatory multilateral trading system with the World Trade Organization (WTO) at its core. Their joint statement emphasized the importance of WTO reforms to enhance negotiation, monitoring, deliberation, and dispute resolution, particularly in anticipation of the 14th WTO Ministerial Conference (MC14). Additionally, they reiterated their support for extending the moratorium on customs duties for electronic transmissions, an issue of growing relevance in the digital economy.

China has previously taken steps through the WTO, requesting dispute consultations over the US tariff measures. The Customs Tariff Commission of the State Council says that Washington’s unilateral actions “undermine the multilateral trading system, increase the burden on American businesses and consumers, and erode the foundation of China-US economic and trade cooperation,”  as MBN had previously reported.

DW reports that Wang Liping, Director of the Asia Department, China’s Ministry of Commerce, highlighted the impact of unilateralism and protectionism on the global economy, urging the three nations to resist such trends and promote regional economic integration. Given that China, Japan, and South Korea collectively account for 24% of the global economy and 19% of global commodity trade, their collaboration could be pivotal in shaping trade dynamics in Asia and beyond.

Despite the push for cooperation, existing trade tensions between the three nations remain. During a separate China-Japan ministerial meeting, Chinese Minister of Commerce Wang Wentao voiced concerns over Japan’s new list of semiconductor-related items and anti-dumping duties on Chinese graphite electrodes. He called for mechanisms like the China-Japan export control dialogue to ensure supply chain stability.

Japan's Minister of Economy, Trade, and Industry, Yoshiharu Muto, acknowledged the geopolitical complexities but emphasized the importance of preserving economic and business ties. In a bilateral meeting with South Korea’s Minister of Trade, Industry, and Energy Ahn Deok-geun, Muto also expressed his hope that economic activities would remain unaffected by political or diplomatic challenges.

Mixed Reactions to US Tariffs

While some reports suggested that China, Japan, and South Korea were aligning their strategies to counterbalance US tariffs, official statements from Japanese and South Korean officials downplayed the notion of a unified response, reports Reuters. South Korea’s Trade Ministry stated to Reuters that any claims of a joint reaction to US tariffs were exaggerated, referring instead to the formal text of the countries’ joint statement. Japanese Minister Muto reiterated that the meeting was primarily an exchange of views rather than a coordinated strategy against US trade policies.