Press Conference by Minister Kajiyama (excerpted version)

*Note: This is a provisional translation for reference purposes only.

9:52 - 10:08 a.m.
Tuesday, November 17, 2020
Press Conference Room, METI

Opening Remarks

Response to the strengthening of export control by the US and China

Minister Kajiyama: China's “Export control law”, which was passed last month, will come into force on December 1st, as the US-China technology rivalry intensifies.

We, the Ministry of Economy, Trade and Industry (METI), are aware that Japanese business communities are raising concerns about the strengthening of export controls by our major trading partners, including the United States and China. We will continue to collect information on the details of the China’s “Export control law” and will actively provide it with Japanese companies in timely manner.

On top of that, today I would like to deliver the three policy responses of METI while taking into account the concerns of Japanese companies.

First, we would like to ask Japanese companies to make every possible effort in order to avoid adverse effects to their overseas business. Specifically, Japanese companies are expected to assess the risks to their supply-chain in detail, while considering the implementation status of export controls of trading partners, and, if necessary, to apply for a license to the competent authority of these trading partners.

Second, since it is important to secure the level playing field with companies in other countries, Japanese companies need not overly restrain oversea businesses in a voluntary manner beyond the export control regulations of trading partners.

Third, if there is an unreasonable instruction from a trading partner that will cause a disruption to the supply chain, METI will lead in providing vigorous support to Japanese companies.

In our dialogue with Japanese companies, we will convey the above three general policy responses and listen to their voices carefully, and, at the same time, ask them to proactively share information with us. We continue these policy efforts and dialogues in order to secure and improve the business environment of Japanese companies.

Question-and-Answer Session

Response to the strengthening of export control by the US and China

Q: I would like to ask about China’s export control law that you just mentioned. I think that concerns are growing among Japanese companies regarding its uncertainty, for China has not announced the details yet. Would you tell us whether you have already worked with the Chinese side regarding this issue?

A: If the relevant information is available to us on this issue, we will obtain it. As you mentioned, the details are not yet clear while there are concerns about how such a control law will be enforced. I believe this is a signal that at the moment we all should proceed cautiously.

Q: Would you tell us how do you assess China's approach to put it into effect on December 1st, despite the uncertainty of procedures and rules?

A: Under ordinary circumstances, such detailed rules should be clearly announced in advance in order to secure predictability and thus attract investment. Currently, many companies are concerned about what will happen in the midst of the US-China friction.
If there is any obstacle for Japanese companies in terms of commerce, caused by whichever country, the US or China for example, METI will take the lead in negotiations and respond accordingly.

Q: You mentioned at the opening remarks that you will listen to the voices of companies. Would you tell us how you will specifically summarize their concerns: after December 1, do you plan to set up a kind of dialogue or intensify hearings through industry associations?

A: We will work respectively with industries or companies concerned. Some months ago, when they had concerns regarding US export administration regulations, the Japanese government urged the US authority to convene WEB briefings for Japanese companies on amendments of the rules. We will make utmost efforts to eliminate concerns on foreign export control regulations that industries or individual companies may have faced.