US, Japan, South Korea pledge closer ties on key technologies

WASHINGTON – The US, Japan and South Korea have pledged to cooperate more closely on building more resilient supply chains and developing key technologies, including semiconductors and critical minerals.

The three countries said they will work to identify potential vulnerabilities in global supplies that are essential to their economies and address weaknesses in strategic sectors. They highlighted semiconductors, clean energy, critical minerals, cyber security and artificial intelligence as vital areas.

“Our shared intent is to leverage this trilateral mechanism to promote the development of critical and emerging technologies and strengthen the security and resiliency of our economies,” the countries said in a joint statement after US Secretary of Commerce Gina Raimondo, Japanese Minister of Economy, Trade and Industry Ken Saito and South Korean Minister of Trade, Industry and Energy Ahn Duk-geun met.

In one example, the three countries aim to promote the development of rare earth element technologies, where China now plays a dominant role. The nations expressed concern over “non-market measures” in the sector recently.

European Union competition commissioner Margrethe Vestager joined representatives of the three countries online ahead of the trilateral meeting to discuss strengthening the supply chains of key technologies.

Mr Saito said in a press conference in Washington that the allied countries are paying close attention to China’s investments in its domestic semiconductor industry. In particular, he noted the rapid expansion of Chinese capacity in legacy chips, older generations of semiconductors that are widely used in automobiles and other key industries.

“I got the feeling, through my discussion with the US, South Korea and EU, that China’s excess production, including legacy chip manufacturing, is something of great interest among allies,” Mr Saito said.

In May, President Joe Biden vowed to sharply increase tariffs on critical minerals from China as Washington pushed to reduce China’s dominance of critical mineral supply chains.

In March, a Commerce Department official said the United States is asking allies to stop domestic companies from servicing certain chipmaking tools for Chinese customers, a key part of America’s move to hobble China’s chipmaking capabilities.

“We expect the South Korea-US-Japan industry ministers’ meeting to serve as an institutional basis for deepening and developing industrial cooperation among the three countries and jointly responding to global risks,” Mr Ahn said. BLOOMBERG, REUTERS