Japanese media: It doesn’t matter, Japan can purchase semiconductors from China!

The Japanese government announced last week that it would officially remove South Korea from its "white list" starting August 28. That afternoon, South Korean President Moon Jae-in also announced that he would kick Japan out of South Korea's "white list." Japanese media pointed out that South Korea's plan would have little impact on Japan, as Japan can import semiconductors from Taiwan.

The Japanese government passed a cabinet decision on the morning of the 2nd to officially remove South Korea from the "white list" starting August 28. The so-called "white list" refers to a list of security and trade friendly target countries formulated by the Japanese government. When exporting high-tech products to these countries, Japanese exporters can enjoy relatively simplified procedures. In the afternoon of the same day, South Korean President Moon Jae-in condemned Japan's move as a "very reckless decision", and the authorities also stated that they would take countermeasures and announced that they would kick Japan out of South Korea's "white list".

According to the Yomiuri Shimbun on the 4th, regarding the South Korean government's announcement that it would remove Japan from South Korea's "white list", a Japanese government official said, "It will not have much impact." In the import and export between Japan and South Korea, Japan mainly exports raw materials and imports finished products from South Korea. Although Japan currently also imports semiconductors from South Korea, a Japanese government official pointed out that "it is possible to purchase (semiconductors) from Taiwan, China, and there are almost no categories that cannot be replaced."

However, after South Korea was kicked out of Japan's "white list", when Japanese companies export their products to South Korea, in principle, almost all items, except food and wood, such as machine tools, electronic parts, carbon fiber, which may be used for military purposes, need to obtain export licenses from the Ministry of Economy, Trade and Industry of Japan separately.

Japanese Minister of Economy, Trade and Industry Hiroshige Seko said at a press conference after the cabinet meeting on the 2nd that South Korea's removal from the white list is just a return to the same environment as the Association of Southeast Asian Nations (ASEAN) and other Asian countries. This is not a ban, and in principle, exports can still be carried out as long as the procedures and management are carried out.

In addition, Hiroshige Seko also claimed that South Korea's removal from the white list will not affect the global supply chain or have any adverse effects on Japanese companies.