As the US President, Trump instigated trade conflicts were not burden enough for the world economy: Now Japan and South Korea beharken. The backgrounds are long.
Between Japan and South Korea, a trade dispute is in the offing. The South Korean Minister of Finance, Hong Nam Ki threatened on Thursday to retaliate after the Japanese government announced restrictions on the supply of South Korean technology companies. “The imposition of the corresponding measures can not be excluded,” said Hong on the Radio. Should swings in the conflict are high, this will both harm all economies. Trade Minister Yoo Myung-Hee spoke of a “great threat” to the world economy, because global supply chains would be interrupted.
Background of increasing clashes of the two countries over the forced labour. In October, the Supreme court had ruled South Korea, the Japanese steel company Nippon Steel & Sumitomo Metal compensation to four South Koreans have to pay, in the Second world war forced labor for the companies. Japan reacted angrily, calling the decision “inconceivable”.
The call for dialogue
To announced the start of the week, the government in Tokyo, that the export of certain high-tech materials should be controlled according to South Korea stronger. These are the ingredients of Chips and Smartphone screens. The restrictions should come on Thursday in effect. You could delay technology exports to South Korea for several months and relate to local corporations such as Samsung, SK Hynix and LG Display. Japan is already considering an expansion of export controls on the Goods, according to the news Agency Kyodo reported.
South Korea’s trade Minister Yoo called for the restrictions to take back and talks. The government in Seoul is trying to date a settlement of the dispute under the mediation of the world trade organization (WTO). It will take a long time, until a result is reached, said Finance Minister Hong.
The world economy is already burdened, for the entirety of the trade conflicts that have started in the United States with China and the EU.
hb/ul (rtr)