Thu, May 27, 2021

Enhancing US-Japan cooperation on global supply chains

In-Depth Research & Reports by Miyeon Oh, James Hildebrand

Defense Industry Defense Technologies Economy & Business Indo-Pacific Japan Politics & Diplomacy Technology & Innovation Trade

Mounting US-China tensions and the COVID-19 pandemic have led to growing calls in the United States and among its allies and partners, including Japan, to address the vulnerabilities in global supply chains critical to national security and economic competitiveness. Strategic uncertainty has led stakeholders to pose the following questions. What role should government play, and to what extent can, or should, governments require firms to operate more in line with national security interests? How can firms manage short-term and long-term risks to balance national security requirements and commercial interests? How should trusted partners be defined, and what is a desirable allied and multilateral approach to enhancing security and resilience of global high-tech supply chains? With new administrations in both the United States and Japan, the two countries have an opportunity to consider these questions and rethink coordination of their efforts to establish secure and resilient supply chains.

This issue brief analyzes recent developments in US and Japanese supply-chain policy, explores the importance of closer coordination through case studies of the semiconductor and rare-earth minerals industries, and provides a set of recommendations for the Joseph R. Biden Jr. and Yoshihide Suga administrations to enhance US-Japan cooperation in the years ahead. These recommendations include actions to operationalize the April 2021 US-Japan Joint Leaders’ Statement by creating a bilateral interagency Supply Chain Steering Committee that includes sector-specific working groups to enhance public-private-partnerships in high-technology industries, and by expanding bilateral supply-chain cooperation into multilateral efforts through flexible and informal frameworks. 

Asia Security Initiative

The Asia Security Initiative, housed within the Scowcroft Center for Strategy and Security, fosters a trans-Atlantic-Pacific Community with a dual analytical approach grounded in key traditional and non-traditional security issues in order to develop new strategies and policies for the United States, its allies, and its partners.