The first meeting of the so-called economic version of "2 plus 2", a new framework for discussions between Japanese and US foreign affairs and economic ministers in the economic field, will soon be held in Washington, but a draft joint statement to be put together at the meeting is revealed. became.
We are strongly pushing for cooperation between Japan and the United States to strengthen the supply chain of semiconductors and other products.
The economic version of "2 Plus 2" by the Japanese and US governments is scheduled to start around 10 pm on the 29th of Japan time. Commerce Secretary Lemond will be present.
According to the draft joint statement to be compiled at this meeting, Japan and the United States will support free and fair economic rules and sustainable economic growth in the world and the Indo-Pacific, and will adopt this vision as a new economic partnership, the IPEF Indo-Pacific. It is said that it will be promoted while utilizing the economic framework.
In addition, we have confirmed the need for strengthening the supply chain of semiconductors and the development and protection of advanced technologies, and will work together in Japan and the United States.
At the meeting, Japan and the United States set up four pillars, such as "countermeasures against economic intimidation" and "strengthening the supply chain," with China and Russia in mind, with the prospect of presenting a concrete action plan for each individual issue. I would like to take the lead in creating an international economic order based on the rules.
The government has announced a policy to establish a new research and development base for next-generation semiconductors with a view to joint development with the United States.
In addition, at the meeting, we will discuss securing resources such as LNG = liquefied natural gas, which Japan depends on overseas.
What is the economic version "2 plus 2"?
The so-called economic version of "2 plus 2" is a new framework for discussions in which the Minister of Foreign Affairs and the Minister of Economy, Trade and Industry from Japan and the Secretary of State and the Secretary of Commerce from the United States participate in discussions in the economic field.
In January, at the Japan-US summit meeting between Prime Minister Kishida and President Biden, it was agreed to establish a framework for discussions, and this will be the first time it will be held.
The US and Japanese governments have held ministerial talks on foreign affairs and defense, and have exchanged opinions on diplomatic and security issues and cooperation between the two countries.
On the other hand, in recent years, the development of advanced technologies such as AI = artificial intelligence and drones that can be used for military purposes has made it difficult to draw a line between the economy and the military.
In addition, China and other countries are strengthening their influence on developing countries through large loans, and diplomacy and economic policy are being integrated.
For this reason, Japan also wants to expand the scope of cooperation of the Japan-US alliance, which is the basis of foreign policy, to the economic field, which will lead to the construction of a new economic order in the Indo-Pacific region.
Focus 1 Semiconductor supply network
At this meeting, it is expected that discussions will be held on strengthening the supply chain = supply network in order to stably procure semiconductors that are in short supply worldwide.
Semiconductors are a core component that is indispensable for all kinds of electronic products such as home appliances, automobiles, and smartphones, but with the rapid expansion of demand, the supply has become insufficient worldwide, and the impact on the production of automobile manufacturers has expanded.
Under these circumstances, international competition for securing semiconductors is intensifying from the perspective of economic security, and the Japanese government has also described semiconductor technology as "a vitally important strategic technology that is directly linked to security." Positioning We are working to strengthen our domestic industrial base.
On the other hand, the United States is financially supporting its semiconductor industry and strengthening export control in the midst of fierce conflict with China over advanced technology.
Semiconductors have many manufacturing processes, Japan has strengths in manufacturing equipment and materials, and the United States has overwhelming competitiveness in terms of design technology.
At the Japan-US summit meeting held in May this year, it was confirmed that we would cooperate to protect and nurture important technologies and secure the toughness of the supply chain.
▽ Development of next-generation semiconductors They also agreed to
establish a joint task force for the
United States and to cooperate further to strengthen economic security.
As allies, Japan and the United States will continue to cooperate in strengthening the semiconductor supply chain and protecting important technologies.
Japan-US semiconductor industry relies heavily on Taiwan
Semiconductor manufacturing now relies heavily on Taiwan worldwide.
Last year, the United States accounted for 49.8% of the global semiconductor sales market.
However, the actual manufacturing is mostly carried out by a contract manufacturer called Foundry.
The leading foundry is a Taiwanese manufacturer, and the world's largest "TSMC" accounts for more than 50% of the world's share.
For this reason, it is feared that once an emergency occurs in the Taiwan Strait, it will have a serious impact on the world's semiconductor supply.
Therefore, it has been pointed out that it is necessary for Japan and the United States to work together to strengthen the semiconductor supply network to reduce dependence on specific regions.
In Japan, the share of semiconductor sales in the world market is only 8.8%, but the share of semiconductor materials such as silicon wafers is 56% and that of manufacturing equipment is 32%.
In addition, Japanese manufacturers maintain a certain level of competitiveness in ▼ "memory" that records data and ▼ "power semiconductors" that efficiently convert electricity into power.
On the other hand, the United States, which occupies nearly half of the global market share, is a world leader in the design and development of "logic semiconductors," which are indispensable for personal computers and smartphones by performing advanced arithmetic processing.
As the world situation becomes more uncertain due to Russia's invasion of Ukraine, attention is being paid to whether Japan and the United States can collaborate and utilize each other's strengths to lead to a stable supply of semiconductors.
Focus 2 "Business and Human Rights"
One of the themes of this meeting is "business and human rights."
The Biden administration in the United States is increasing pressure on China because of human rights violations.
In June, a law banning the import of products produced by forced labor in China's Xinjiang Uygur Autonomous Region came into force.
As a result, when a company exports a product to the United States, it is expected that not only the product but also the procured raw materials will be required to show that it is not produced by forced labor.
Based on these movements, Japanese companies have decided to stop using cotton products produced in the Xinjiang Uygur Autonomous Region, and ▼ Fast Retailing, which develops UNIQLO, specializes in confirming cotton farmers in-house. We are under pressure to respond, such as setting up a team.
Under these circumstances, it will be noted that at this meeting, it will be possible to reach an agreement on further measures, such as creating a concrete framework for eliminating human rights violations such as forced labor from corporate activities.
Focus 3 “Energy and Food Security”
Energy and food security will also be discussed at this meeting.
energy
Following the military invasion by Russia, Japan and the United States are in line with the G7 = seven major countries and are strengthening economic sanctions on Russia.
However, unlike the United States, which produces crude oil and LNG = liquefied natural gas in its own country, Japan has an energy self-sufficiency rate of about 10%, which is the lowest level in the G7, and depends on foreign countries including Russia.
Under these circumstances, on June 30, Russian President Putin signed a presidential decree ordering the change of business entity to a Russian company for "Sakhalin 2", a natural gas development project in which Japanese companies also participate. It is unclear whether or not will continue to procure natural gas from Russia.
For this reason, Japan aims to further strengthen its relations with the United States at this meeting so as not to run out of energy.
food
On the other hand, over food, the two countries agree that recent price increases could have a negative impact on the economy.
In addition, as global inflation caused by Russia's military invasion has spread concerns about the food crisis in the Middle East and African countries, it is expected that the meeting will discuss these issues, and Japan and the United States should work together to deal with them. Is expected to confirm.
Expert "Benefits for both R & D in Japan and the United States"
Experts point out that if Japan-US cooperation in the semiconductor field is strengthened by this 2 plus 2, it will lead to a stable supply of semiconductors and acceleration of research and development, which are in short supply worldwide.
Akira Minamikawa, senior director of OMDIA, a British research company familiar with the semiconductor industry, said, "Although the share of sales in the American semiconductor market is about 50% in the world, we are actually making overseas, especially in Taiwan. It depends. I am very worried about the rising geopolitical risk, "he said, pointing out that if the conflict between the United States and China becomes serious, the supply of semiconductors could be affected.
He added, "From the perspective of the United States, the one-legged method that relies on Taiwan is dangerous, so it is very important for Japan to play a part in that." Geopolitics He said that cooperation between Japan and the United States is indispensable to reduce such risks.
Furthermore, he pointed out that Japan has strengths in manufacturing equipment and materials for the development of advanced semiconductors. It cannot be done without all three. It is difficult to develop advanced technology only in the United States, and if the cooperation between Japan and the United States is strengthened, the development period will be shortened. " He pointed out that working on development is beneficial to both parties.
"Economic version 2 + 2" American aim
Regarding the foreign affairs of Japan and the United States, a new consultation framework in which economic ministers discuss the economic field, the so-called economic version of "2 plus 2", the United States aims to strengthen economic security.
There is a risk that economic security problems will directly lead to national security, such as the supply network of products such as semiconductors being cut off due to the worldwide spread of the new coronavirus, which will have a major impact on the US economy. It is emerging.
In particular, semiconductors are becoming more important not only in the high-tech field but also in military technology, but the United States has a declining share of production in the world as a whole and is dependent on imports from Taiwan and other countries.
For this reason, we plan to strengthen economic security by deepening cooperation with our ally Japan in ▼ measures for the stable supply of semiconductors and mineral resources and in the development of next-generation semiconductors.
In addition, in this "2 plus 2", it is expected that the agenda will be to create a framework for eliminating human rights issues such as forced labor from corporate activities, keeping in mind the human rights situation in Xinjiang Uygur Autonomous Region of China.
The United States is increasing pressure on China because of human rights violations, and the Biden administration wants to reemphasize its stance of emphasizing human rights with Japan, which has many production bases around the world.
Japan and the United States consider "upper oil price setting"
As part of sanctions on Russia, setting a maximum price for Russian oil is being considered.
At the G7 summit in June, a senior Biden administration official said, "G7 leaders will make final adjustments to give instructions to relevant ministries and agencies to create a mechanism for setting maximum prices. "It is," and the summit statement included "I will continue to explore it in the future."
In addition, a joint statement following the Japan-US Finance Ministers' Meeting in July welcomed the G7's efforts to set cap prices.
According to senior Biden administration officials, the two goals are to ▼ cut off Russia's continued military invasion and ▼ curb rising energy prices.
Bloomberg, an American media outlet, said on the 6th of this month that related countries such as the United States are discussing setting the price from $ 40 to $ 60 per barrel.
Regarding the method, the countries concerned do not allow the provision of insurance services to vessels carrying Russian oil if the price exceeds the set maximum price, and import Russian oil in excess of the maximum price. It is believed that they are considering a mechanism such as imposing sanctions on the importers who have made the purchase.
China and India increase oil imports from Russia after invasion of Ukraine
Since February, when Russia's military invasion of Ukraine began, China and India have significantly increased oil imports from Russia.
According to resource-related research firm Tanker Trackers.com, China has increased oil imports by sea from Russia by 3.1 times compared to before the military invasion.
In addition, India has been importing oil mainly from Middle Eastern countries, but after the invasion, imports from Russia have increased rapidly to 48.7 times.
It is believed that the background is that it has become possible to procure from Russia at a lower price than the Middle Eastern countries.
US Experts Oil Limit Pricing "Doesn't Seem Effective"
Brenda Shaffer of the US Navy Graduate School, which specializes in energy security, said that Russian products "do not seem realistic or effective," and expressed skepticism.
"It would be effective if we could get the cooperation of all the major countries, or if we could impose so-called secondary sanctions that not only impose sanctions on Russia but also sanctions on other countries. Both are difficult. China will not participate in sanctions on Russia, and secondary sanctions will start some sort of struggle with China and India, and Western nations will not be willing to do so. "
In addition, Europe and the United States have taken steps to limit the import of Russian oil, saying that China is procuring cheaply from Russia, saying, "We have created an oil market that will greatly benefit China. The winner of the sanctions is China. "
On the other hand, she said that the United States is eager to set a maximum price, saying that she is "strong against Russia and wants to say that she can do something", which is the domestic appeal of the Biden administration. I showed the idea.
Economic relations between Japan and the United States
The United States is the world's largest economy with GDP = gross domestic product, and is Japan's second largest trading partner after China in terms of both imports and exports.
According to the Ministry of Foreign Affairs, the value of exports from Japan to the United States last year was about 14.83 trillion yen, accounting for 18% of the total exports, mainly exporting automobiles, automobile parts, and vehicle engines.
On the other hand, the value of imports from the United States last year was about 8.89 trillion yen, accounting for 10% of the total imports, mainly importing pharmaceuticals, grains, and liquefied petroleum gas.
Also, for the United States, Japan is the fourth trading partner in terms of both imports and exports, and the economies of both countries are in a complementary relationship.
However, eliminating the trade deficit with Japan has been a long-standing issue for the United States.
For this reason, the former Trump administration has pursued protectionist policies such as imposing high tariffs on steel and aluminum imported from Japan.
In addition, the Trump administration has taken a negative stance on the framework of multilateral trade liberalization and has withdrawn from the TPP = Trans-Pacific Partnership Agreement in which Japan participates.
The current Biden administration also has a policy of prioritizing the domestic economy and has not broken its negative position on the return of the TPP, but each country has been affected by the disruption of the supply chain = supply network due to Russia's military invasion of Ukraine. There is a movement to seek economic cooperation with.
In May, it announced that it would start discussions to launch a new economic partnership, the IPEF = Indo-Pacific Economic Framework, with China intensifying its supremacy.
14 countries including Japan have announced their participation in IPEF, and we will establish four "pillars" such as ▽ trade including digital and ▽ supply chain, and promote the creation of common rules.
Importance of Japan-US cooperation
In response to the spread of the new coronavirus infection and the disruption of the supply chain = supply network due to the military invasion of Russia, there is an increasing need for Japan and the United States to cooperate and address global issues.
The spread of the new corona infection had a major impact, especially in the manufacturing industry, due to a global shortage of semiconductors and a delay in parts procurement, which led to a decline in automobile production.
For this reason, the US and Japanese governments have agreed to promote cooperation in the field of economic security, such as strengthening the semiconductor production system and supply network at the summit meeting held in May.
In response to the military invasion of Ukraine, Japan and the United States coordinated economic sanctions on Russia, banned exports of semiconductors, and withdrew the most favored nation treatment, which is the basic principle of free trade.
In addition, as China is strengthening its influence on developing countries through infrastructure development, the two countries have decided to support and invest in the development of high-quality infrastructure in the Indo-Pacific region. With China in mind, which is strengthening its behavior, it is clear that it will cooperate.