The Intelligence from The Economist At stake, chips: Japan-South Korea trade spat
Jul 16, 2019
Simon Rabinovich, Asia economics editor for The Economist, dives into the Japan-South Korea trade strife, revealing how historical tensions impact global tech supply chains. Edward McBride, also from The Economist, discusses a troubling trend in Assam, India, where a citizenship crackdown targets Muslims, raising serious human rights concerns. The conversation also highlights disparities in American and European work cultures, reflecting on how economic and political factors shape labor practices across continents.
AI Snips
Chapters
Transcript
Episode notes
Escalating Tensions
- Japan and South Korea, despite their shared alliance with the US, have escalating political tensions.
- These tensions stem from unresolved historical issues and recent trade restrictions imposed by Japan.
Trade Dispute's Global Impact
- Japan restricted chemical exports to South Korea, impacting the global semiconductor market.
- South Korea produces a significant portion of the world's memory chips, making this a global issue.
Historical Roots of Dispute
- The current dispute stems from South Korea's Supreme Court ruling allowing wartime labor compensation claims against Japanese companies.
- Japan believes a 1965 agreement settled these claims, leading to escalating tensions.