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QINGDAO TODAY
在线翻译:
szdaily -> World Economy -> 
US urges Japan, S. Korea to reach standstill in trade spat
    2019-08-01  08:53    Shenzhen Daily

A TRADE dispute between South Korea and Japan is threatening to spiral out of control, and both governments want the White House on their side.

A senior U.S. official told reporters Tuesday that the United States is urging South Korea and Japan to reach a “standstill agreement” to give the sides more time to negotiate further.

The comments ended weeks of relative quiet from the U.S. Government, during which officials from South Korea and Japan tried to get clarity on the Trump administration’s stance on the dispute, which has implications for global technology companies.

U.S. National Security Adviser John Bolton talked to his Japanese and South Korean counterparts, and U.S. Secretary of State Michael Pompeo will meet with the foreign ministers from both countries Thursday, according to the official.

Japan earlier this month announced restrictions on exports to South Korea of some materials used in the production of memory chips and other components vital for smartphones, laptops and servers at U.S. tech giants such as Amazon.com and Microsoft Corp.

The move, which Tokyo justifies as a national security action, came after tensions flared over whether Japan has sufficiently compensated Koreans who suffered under Japan’s 1910-45 occupation of the peninsula.

The Asian nations in recent weeks have dispatched senior officials to Washington to meet with U.S. lawmakers and government officials to plead their case, and they’ve lobbied U.S. media and business executives.

They argue that another trade war in Asia — in addition to the U.S.-China conflict — would only further impede the global supply chain and could disrupt the production of the semiconductors and advanced screens that U.S. companies rely on to make their smartphones and tablets.

South Korean Trade Minister Yoo Myung-hee last week sought help from the American private sector and Capitol Hill to get the White House involved in a resolution. Japanese officials are in Washington this week to explain their position, people briefed on the plans said.

It could get even uglier if Japan this week decides to remove South Korea from a so-called “white list” of trusted export destinations. A public comment period on the matter ended last Wednesday and if Tokyo moves forward with the plan, hundreds of products could be affected by the removal of the existing blanket approval.

Japanese media said the cabinet will make the official decision Aug. 2, which would take effect three weeks later.

South Korea is bracing for the impact. On Monday, the government-affiliated Korea Strategic Trade Institute briefed local companies, providing a list of dozens of products that could be affected, including titanium alloys, gyroscopes and crane trucks.

Yoo told reporters Monday in Seoul that U.S. Commerce Secretary Wilbur Ross “fully acknowledges” how Japan’s export curbs can affect the global supply chain, and that the United States will make an effort for a quick resolution, without further elaborating.

A South Korean official said it felt like the U.S. administration and companies shared the country’s concerns with Japan’s move. A spokesman for Ross declined to comment.

According to a person familiar with the matter, Yoo even pitched her U.S. counterparts to include the issue in the bilateral trade talks with Tokyo.

Those negotiations are set to resume at the ministerial level between U.S. Trade Representative Robert Lighthizer and Japanese Economy Minister Toshimitsu Motegi later this week.

Stable relations between Japan and South Korea form a pillar of U.S. influence in Asia — the world’s fastest-growing region. Both Japan and South Korea host a total of more than 80,000 American troops, while U.S. carriers routinely ply the waters for joint naval operations with the allies. (SD-Agencies)

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