US, Japan pledge to safeguard global economic order amid challenges posed by China, Russia

In response to threats from China and Russia, the United States and Japan pledged on July 29 to safeguard an open, rules-based international economic order. In addition, both countries also intend to undertake cooperative development of next-generation semiconductors through a research facility Tokyo has planned to establish in near future, Kyodo News reported. The announcements were made as the foreign and economic ministers of the two nations gathered in Washington for their maiden "two-plus-two" talks. 

The meeting was co-hosted by US Secretary of State Antony Blinken and Commerce Secretary Gina Raimondo with Japanese Foreign Minister Yoshimasa Hayashi and Economy, Trade & Industry Minister Koichi Hagiuda in attendance. It comes as tackling economic vulnerabilities is becoming more crucial for their national security as China increases its influence in the Indo-Pacific and as Russia's war against Ukraine has raised concern over the global food crisis. Releasing a joint statement, the leaders of US and Japan stressed the need to bolster their economies more "competitive and resilient."

US and Japan stress the need to combat economic security issues

Moreover, both sides also vowed to defend the international economic order based on laws and combat challenges to economic security. The leaders of the two countries also called on to develop an action plan that concentrated on initiatives to improve supply chain resilience, stop economic coercion and opaque loan practices, and safeguard crucial infrastructure and technologies. "In an era in which foreign security policy and economic policy are inseparable, we have been able to open a new page in the Japan-US alliance," Japanese minister Hagiuda told reporters, as per Kyodo News. 

US, Japan pledged to further promote supply chain resilience in key sectors

Although China was not specifically mentioned in the joint statement, the US side implied that the East Asian nation's assertiveness and use of economic leverage to compel other countries into making concessions was the driving force behind measures to strengthen economic security. The four ministers decided to intensify their efforts to promote supply chain resilience in key industries, particularly those involving semiconductors, batteries, and essential minerals. Notably, the semiconductor supply chain has come under increased scrutiny since the coronavirus pandemic has caused a global scarcity of the critical parts used in many appliances. Meanwhile, US and Japan also pledged to keep engaging together to strengthen export controls on vital and developing technologies, such as surveillance systems, to stop malicious actors from misusing them.

Image: Twitter/@SecBlinken