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China's Dual-Use Export Ban to Japan Ripples Through South Korean Supply Chains

South Korea's industry ministry warns that China's new ban on exporting dual-use items with military applications to Japan will likely impact Korean imports and industries due to interconnected supply chains. The government has held meetings to assess the impact and plans to work with private industry to prevent supply shortages of critical materials. Simultaneously, Seoul is expanding communications with the United States to prevent potential trade conflict over a revised Korean network law concerning online information. The ministry is also formulating strategies to counter growing trade protectionist policies from partners like the EU, Canada, and Mexico.

Key Points: China Export Ban Impacts South Korea, Supply Chains at Risk

  • China bans dual-use exports to Japan
  • South Korean supply chains at risk
  • Government vows to prevent shortages
  • US concerns over Korean network law
  • Trade protectionism from EU, Canada, Mexico
2 min read

China's export ban on dual-use items to Japan could impact S. Korean trade

South Korea assesses impact of China's dual-use export ban to Japan, vows to prevent supply shortages and manages US trade concerns.

"We will thoroughly manage the supply and demand of such items... to ensure there are no disruptions to production activities. - Vice Industry Minister Moon Shin-hak"

Seoul, Jan 8

China's recent ban on exports of dual-use items with military applications to Japan will likely impact South Korea's imports and industries, the industry ministry said on Thursday, vowing measures to prevent a supply shortage of affected items.

The Ministry of Trade, Industry and Resources held a supply chain inspection meeting with relevant ministries and industrial associations Thursday to assess the impact of China's latest decision, reports Yonhap news agency.

On Tuesday, China's Ministry of Commerce announced an immediate ban on exports of all dual-use items with potential military applications to Japan, citing national security concerns.

Dual-use items refer to goods, software and technologies that are intended for legitimate civilian applications but may also be repurposed for military use.

The ministry noted that China's move was not directed toward Korea but is expected to have a broad impact across domestic industries as the three countries' supply chains are interconnected.

The government will closely communicate with private industries to prevent China's fresh export curb from creating a supply shortage of industrial materials in Korea, the ministry added.

"We will thoroughly manage the supply and demand of such items, while keeping all possibilities open to ensure there are no disruptions to production activities of our industries and companies," Vice Industry Minister Moon Shin-hak said in a press release.

Meanwhile, the government will work to expand communications with the United States to prevent potential conflict over South Korea's revision of its network law, the trade ministry said on Thursday.

Last week, the U.S. State Department expressed "significant" concerns over a recently passed revision to Korea's Information and Communications Network Act aimed at addressing false and fabricated online information, raising concerns the issue might stir trade conflict between the two countries.

To prevent potential conflict, the Ministry of Trade, Industry and Resources decided during a trade strategy meeting to enforce outreach efforts to the U.S. to minimise conflict over non-tariff trade barrier issues.

In the meeting, the ministry also discussed a response strategy to trade protectionist policies by Korea's trade partners, including stronger steel safeguard measures by the European Union and Canada, as well as Mexico's tariff hike plan.

- IANS

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Reader Comments

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Priya S
The timing is interesting. With all the geopolitical tensions, countries are using trade as a weapon. While China cites 'national security', it disrupts entire industries. Hope Korean companies have contingency plans. Indian manufacturers should take note and build resilience.
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Aman W
Dual-use items are always a tricky area. Every country has the right to protect its security, but blanket bans create collateral damage. South Korea is caught in the middle here. Shows why we need strong regional partnerships in Asia beyond just supply chains.
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Sarah B
The article mentions South Korea also has issues with the US over its network law. It's a tough spot - balancing relations with China and the US. Many emerging economies face this. India's diplomatic balancing act is equally complex. 🤔
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Vikram M
Respectfully, while the focus is on South Korea, I think the Indian government's response here could be more proactive. We should be offering to fill supply gaps where possible and strengthening tech partnerships with Seoul. It's an opportunity, not just a news item.
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Nisha Z
Global trade is becoming so fragile. One policy change and entire industries suffer. This is why Atmanirbhar Bharat is so important for critical sectors. We cannot be overly dependent on any single country for essential goods. Jai Hind! 🇮🇳

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