※Translated with Notion AI. (Plus version)
I previously noted that Japan’s geopolitical importance is on the rise.
This is due to the successful alignment between Japan’s economic security strategy and the U.S.’s policy shift towards China.
The starting point for Japan’s current economic security policy was the “Towards ‘Formulating Economic Security Strategy’” proposal, announced by the Liberal Democratic Party in December 2020.
The core principles of this strategy are “strategic autonomy” (reducing dependence on other countries) and “strategic indispensability” (expanding areas where Japan’s presence is vital to the international community).
Based on these principles, the “Economic Security Promotion Act” was enacted in May 2022.
In layman’s terms, the strategy aims to (1) repatriate key industries (like semiconductors) to reduce dependence on China, and (2) strengthen economic ties with the U.S. and Asian countries outside China, particularly India and Southeast Asia.
Prime Minister Kishida plans to visit the U.S. in April and address the U.S. Congress. In his policy speech in January, he stated:
“Through opportunities such as my official visit to the United States, planned for early April, I will further expand and deepen Japan-U.S. relations, which are the cornerstone of Japan’s diplomacy.
By further reinforcing the Japan-U.S. Alliance, we will make Japan’s security absolutely unfailing while contributing to regional peace and stability.
Moreover, we will use various channels to reinforce cooperation between Japan and the United States in the area of economic security, including cooperation to enhance the resilience of our supply chains and cooperation regarding semiconductors.”
The purpose of his U.S. visit is not only to reinforce the “Japan-U.S. Alliance”, but also to reinforce “cooperation between Japan and the United States in the area of economic security”.
This is a welcomed move for the U.S., which is looking to exclude the Chinese economy from the supply chain.
Put simply, Japan will fill the void in the U.S. economy left by reduced dependence on China.
