Japan’s ruling Liberal Democratic Party members proposed Thursday the creation of a public-private body in the country to prevent Japanese businesses operating abroad from being affected by sanctions and export controls that the United States and China impose on each other.
Amid intensifying rivalry between the world’s two largest economies, an LDP group exploring ways to improve economic security called for setting up such an entity that would also be tasked with discussing such issues as strengthening supply chains.
“Business circles (in Japan) have been worried about how they should operate in the U.S. and Chinese markets,” Akira Amari, who heads the LDP group, told a meeting of its members. “The public and private sectors need to hold discussions on how to deal with this situation and devise a strategy.”
Among Japanese businesses embroiled in U.S.-China tensions is Kioxia Holdings Corp., whose initial public offering has been postponed after the United States tightened restrictions last year on the chipmaker’s client, China’s Huawei Technologies Co.
Washington’s measure blocks Huawei from obtaining chips developed or produced using U.S. software or technology, including those made by Kioxia.
The envisioned dialogue body will be made up of officials from relevant government ministries and agencies as well as members from the business and academic sectors.
Topics expected to be covered by the entity will include how to deal with Chinese laws, including those limiting exports of items and technologies related to Beijing’s national security, which may affect Japanese businesses.
The LDP group plans to submit its proposal to the central government in the near future.
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