Japan’s dependency on particular countries for imports of semiconductors and rare metals is high compared with other Group of Seven major powers, the government said in a white paper released Tuesday.
Excessive dependence is a risk to supply networks, the 2024 White Paper on International Economy and Trade said, stressing the importance of import source diversification.
Industry minister Ken Saito reported on the white paper at a Cabinet meeting Tuesday.
China provides enormous subsidies in order to overproduce electric vehicles and other products, overwhelming rivals in markets in and outside the country. The United States and the European Union are trying to tackle the situation by imposing additional tariffs to protect their domestic industries.
The white paper emphasized that promoting further international collaboration is essential to prevent the spread of protectionism and decrease the level of import dependency on particular countries.
Regarding the yen’s weakening, the white paper said Japan needs to reinforce export competitiveness, pointing out that the country’s exports have been showing sluggish growth in volume terms.
While noting that a certain period of time is needed for the effects of the weaker yen to start appearing, the white paper said Japanese companies that currently export goods indirectly through trading companies should be supported, including via the provision of information and knowhow so that they can start direct exports. Such companies account for about 80% of the country’s manufacturing industry.
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