China Hints at Economic Retaliation Against Japan

Global Times Warns Against Remarks Damaging China-Japan Relations
Concerns Over Economic Deterioration in Both Countries if US Aligns on Hong Kong National Security Law

[Image source=Yonhap News]

[Asia Economy Reporter Cho Young-shin] After the Japanese government expressed a 'concerned stance' regarding China's enactment of the Hong Kong National Security Law (Security Law), remarks suggesting that Japan could become the second target of trade retaliation after Australia emerged through Chinese state media.

On the 29th, China's state-run Global Times reported the position of the Chinese Academy of Social Sciences that Japan should avoid being overly dependent on the United States in order to maintain a sound economic relationship with China. This is interpreted as a warning that if Japan aligns with the U.S. regarding the Hong Kong Security Law, it could face trade and other economic retaliations.

Previously, Australia, which sided with the U.S. in blaming China for the novel coronavirus disease (COVID-19), suffered disadvantages such as a ban on beef exports and the imposition of barley tariffs from China.

When the National People's Congress (NPC) of China passed the Hong Kong Security Law at the 3rd plenary session of the 13th NPC on the 28th, the Japanese government summoned the Chinese ambassador to Japan and conveyed the position that "Hong Kong is a very important partner to Japan, and Japan has consistently supported the 'One Country, Two Systems' policy, and will respond appropriately in coordination with related countries."

The Global Times stated that Japan has made very inappropriate remarks regarding the Hong Kong Security Law and warned that Japan should be cautious about statements that damage China-Japan relations. The media added that in April, Japan invested $2.2 billion (approximately 2.72 trillion KRW) to relocate its domestic manufacturers' production facilities within China to reduce dependence on China, emphasizing that politics should not obstruct economic exchanges between the two countries.