Editorial | Shinzo Abe should mend ties with South Korea, not start new trade war
- Animosity arising from wartime forced labour puts free-trade zone vital to economic growth – and agreed by Beijing, Tokyo and Seoul – under threat
The free-trade zone that China, Japan and South Korea agree is vital to economic growth is being threatened by one of its proponents, Japanese Prime Minister Shinzo Abe.
Animosity is rife between the neighbours over issues languishing since the Japanese occupation of the Korean peninsula, but Tokyo claims national security has prompted its action. With Seoul warning of retaliation including product boycotts, a diplomatic resolution is urgently needed to head off the risk of another trade war.
There are shades of US actions against the Chinese technology giant Huawei in Japan’s moves. Tech firm Samsung is among South Korean companies hit by last week’s tightening of controls on chemicals needed to produce chips and displays for smartphones and televisions.
A longer processing period for exports has been imposed and, while not a ban, over time it could lead to a curbing or even shutting down of semiconductor production.