Press Conference by Minister Saito (Excerpt)

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

10:04 to 10:16 a.m.
Friday, June 21, 2024
Press Conference Room, METI Main Building

Opening Remarks

Visit to the United States

Good morning. To begin, I would like to mention five points.
First, if circumstances permit, from Tuesday, June 25, to Friday, June 28, I will visit Washington D.C., the United States, in order to attend the meeting of ministers of commerce and industry of Japan, U.S., and Republic of Korea (ROK). This will be the first meeting to be held based on the agreement reached at the Japan-U.S.-ROK Summit Meeting in Camp David last year.
Japan, the United States, and the ROK are partners that share basic values. At the meeting, we are scheduled to hold a discussion on enhancing the trilateral partnerships in the fields of economy such as cooperation in critical and emerging technologies, supply chain resilience, and clean energy.
In addition to attending events to promote businesses between Japan and the United States, I would like to hold bilateral meetings with relevant ministers.
For detailed information, the administrative staff will provide a briefing later.

Visit to Hokkaido

Second, tomorrow, on June 22, I will visit Tomakomai City, Hokkaido, and inspect a demonstration facility related to ship-based storage and transportation of CO2 used in Carbon Dioxide Capture and Storage (CCS).
During the current Diet session, the CCS Business Act, which lays the foundation for the development of the business environment for CCS, was enacted and promulgated last month. Going forward, in light of the results of the demonstration in Tomakomai, we will consider a support system that enables smooth business entry and operation in preparation for the start of the CCS project by 2030.
To that end, on that day, I am scheduled to observe the site of CCS technology demonstration in person and exchange opinions with the local people, including Tomakomai’s mayor, on how to promote understanding in the region.

Training of workers for the offshore wind power industry

Third, I would like to talk about the training of workers for the offshore wind power industry.
Yesterday, an international forum was held, organized by the Floating Offshore Wind Technology Research Association (FLOWRA). In addition to top business executives from 18 Japanese power generation companies, the ambassadors from the United States, the United Kingdom, and the EU, among other officials, attended the forum, and FLOWRA expressed its intention to cooperate with those like-minded countries.
Moreover, today, the Education Council for Offshore Wind (ECOWIND), will be established. This council, comprised of power generation and construction companies, among other business operators, will cooperate with education and research institutions to train workers for the offshore wind power industry through measures such as preparing curriculums based on the industry’s needs.
The Ministry of Economy, Trade and Industry (METI) will strongly support initiatives led by Japanese industry to strengthen industrial competitiveness regarding offshore wind power.

Bookstores Promotion Project Team

Fourth, I would like to offer a few words on the Bookstore Promotion Project Team’s activity. Next week, on June 26, an event to celebrate the reopening of a Keibundo bookshop in Komae City, Tokyo, and from METI, State Minister Kozuki will attend the event.
In July last year, the only bookstore in Komae City closed; however, from what I heard later, after some local book lovers set up a place in the station where people can bring books and read, and many others expressed their desire for a bookstore. Those people’s voices led to the decision to reopen the closed bookstore.
As the number of bookstores continues to decrease across the country, local initiatives to revive bookstores are valuable, so METI would like to promote the broad sharing and nationwide spread of similar initiatives. At next week’s event, State Minister Kozuki will directly convey that wish.
Regarding detailed information, please contact our administrative staff.

Results of the follow-up survey regarding Price Negotiation Promotion Month

Let me move on to the fifth point. With regard to the situation of small and medium-size enterprises’ price negotiations and price pass-through, the results of the survey conducted in response to the Price Negotiation Promotion Month initiative in March this year will be published today.
Regarding price negotiations, I believe that a favorable atmosphere for negotiation is being fostered, as indicated by an increase in proposals for negotiation from order-placing companies. There was also a finding that around 70% of the companies that have been able to negotiate prices have been able to hold negotiations concerning labor cost as well.
The price pass-through rate rose slightly to 46.1%. Price pass-through has become widespread, with the percentage of companies that have been able to fully pass cost increases on to consumer prices, while there are signs of a bipolarization between companies that have been able to do that and companies that have not. Therefore, we will continue to ensure implementation of measures to promote price pass-through.
Going forward, we will announce the situation of price negotiations and pass-through regarding each order-placing company around early August. At the same time, there is a plan to provide guidance and advice, in the names of the ministers with relevant jurisdiction, to the top management of order-placing companies whose situation is not favorable.
For detailed information, the administrative staff will provide you a briefing.
Having mentioned the five points, I will end my remarks here.

Question-and-Answer Session

Export control on semiconductor manufacturing equipment

Q: The other day, the U.S. Under Secretary of Commerce for Industry and Security visited Japan, and there was a media report that he requested the strengthening of export control on advanced semiconductors. Please clarify facts on that point and tell me about METI’s policy, if any, for dealing with this matter.

A: I have been informed that yesterday, June 20, METI’s Vice-Minister for International Affairs Hosaka and other officials had a meeting with U.S. Under Secretary of Commerce for Industry and Security Alan Estevez. I have heard that they engaged in a meaningful exchange of opinions on various points of discussion. Since the discussion was a diplomatic communication, I would like to refrain from commenting on the specifics.

Solar panels

Q: I would like to ask you about overproduction in China. On solar panels in particular, there have been media reports that the price has fallen to half of last year’s level and that some factories have been closed in Europe. First, I would like to ask you about how you view the impact on Japan.

A: First, I am aware of those media reports. The joint communique issued at the G7 summit last week expressed concerns over overproduction in China leading to market distortions and undermining the economic resiliency and security of the G7 countries. The case of solar panels is a typical example of that.
In particular, as the importance of clean energy technology grows, Japan’s policy is to develop supply chains that are not dependent on any particular country from the perspective of energy security.
Therefore, Japan would like to design a market where elements other than price, such as decarbonization and stable supply, are justly appreciated in cooperation with like-minded countries, including the United States and Europe. In particular, regarding perovskite solar cells, in which Japan has an advantage in terms of technology and raw materials, I believe that it is important to promote the public implementation of those cells from the viewpoint of realizing a resilient energy structure.