China’s recent decision to ban the export of dual-use items with military applications to Japan is expected to have repercussions on South Korea’s imports and industries, as stated by the industry ministry. The Ministry of Trade, Industry and Resources conducted a supply chain inspection meeting to evaluate the potential impact of China’s export ban.
The ban, announced by China’s Ministry of Commerce, covers all dual-use items with possible military applications to Japan, citing national security concerns. These items are goods, software, and technologies designed for civilian use but could also be repurposed for military purposes. While the ban is not specifically aimed at Korea, it is anticipated to affect industries in all three countries due to their interconnected supply chains.
To prevent any supply shortages of industrial materials in Korea due to China’s export restrictions, the government plans to work closely with private industries. Vice Industry Minister Moon Shin-hak emphasized the importance of managing the supply and demand of these items to avoid disruptions in production activities.
The South Korean government also aims to enhance communication with the United States to mitigate potential conflicts arising from Korea’s revision of its network law. The U.S. State Department had expressed concerns over the revision, fearing it could lead to trade conflicts between the two nations. To address this, the Ministry of Trade, Industry and Resources will engage in outreach efforts to the U.S. to reduce conflict over non-tariff trade barriers.
In addition, discussions were held during a trade strategy meeting regarding how to respond to trade protectionist measures by Korea’s trade partners. This includes the European Union and Canada’s reinforcement of steel safeguard measures, as well as Mexico’s plan to increase tariffs.
