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Washington International Law Journal

Abstract

Abstract: Decoupling refers to the strategy of separating and disconnecting economies and markets between different nations. However, in the contest of the ongoing trade conflict between the United States and China, decoupling primarily refers to determining economic dependence on a specific nation as a national security risk, thereby reinforcing vulnerabilities in one’s supply chain. Japan views the United States as its primary partner in national security policy and China as a significant market because of its geographic proximity. As a result, ensuring economic security became a pressing concern for Japan.

Japan refers to the United States’ idea of economic statecraft to shape its economic security policy. Since 2007, Japan strengthened foreign direct investment regulations by making amendments to the Foreign Exchange and Foreign Trade Act. Some interpret these changes as an endorsement of the United States’ efforts to prevent technology leakage. One example of this technological policy is the Economic Security Promotion Act of 2022, which was enacted to ensure the stability of economic activity by establishing essential procedures and regulations.

As no nation can independently complete the supply chain, it is necessary for Japan to foster collaboration among allies and to have the engagement of the United States. Whether or not the United States approves the acquisition of United States Steel Corporation by Nippon Steel may influence the future relationship between the two nations.

First Page

156

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