Japan blocks ‘industrial chain’ from summit statement; China probably has an eye on dominating global markets

China demanded that the joint statement for its recent trilateral summit with Japan and South Korea in Seoul include the term “industrial chains” as an area where cooperation can be strengthened, it has been learnt. However, according to diplomatic sources, the Japanese side refused, believing the phrase reflects China’s attempt to dominate the global market in key industrial sectors.

China uses “industrial chain” to refer to the entire production process, the sources said, from raw materials to the production of final products, only by Chinese companies.

Xi Jinping’s government has repeatedly signaled its intention to strengthen supply and industrial chains. It wants to strengthen its industrial chains in key sectors such as electric vehicles and artificial intelligence.

During negotiations to finalize the joint statement, Japan rejected the term “industrial chain” because it would allow Chinese companies to expand overseas and could lead to overproduction. On the other hand, Japan has successfully tried to incorporate the term “supply chain disruptions” with China’s export restrictions on rare metals and other materials in mind.

Regarding a trilateral free trade agreement between Japan, China and South Korea, China emphasized the phrase “accelerating negotiations.” However, the joint statement only included a statement that the nations will “continue discussions,” the phrase Japan insisted on.

China refused to make any concessions on the North Korea issue, but agreed with Japan’s claims about economic security.