The Adaptation of Japanese Economic Statecraft: Trade, Aid, and Technology

• Published in: World trade review Vol. 20; no. 2; pp. 186 - 202
• Main Author: Govella, Kristi
• Format: Journal Article
• Language: English
• Published: Cambridge, UK Cambridge University Press 01.05.2021
• Subjects: Adaptation; Asia-Pacific Economic Cooperation Forum; Case studies; Competition; Economics; Foreign policy; General Agreement on Tariffs and Trade; International relations; International trade; Original Article; Power; Sanctions; Trade disputes; World War (1939-1945); World War II; CHINA; JAPAN; United States > US; China; Japan; Economic statecraft; US–China competition; trade; aid; Japan; dual-use technology
• ISSN: 1474-7456; 1475-3138
• DOI: 10.1017/S1474745620000543

This article examines how Japan has adapted economic statecraft to serve changing strategic aims through case studies of trade arrangements, official development assistance, and dual-use technology. After World War II, Japan continuously adapted these economic tools to pursue shifting non-economic goals related to international reintegration, comprehensive security, human security, and traditional security. More recently, in response to escalating US–China strategic competition, Japan has employed economic statecraft to simultaneously reduce international instability and to counter China in targeted ways as part of a broader hedging approach. First, Japan has attempted to bolster multilateral trade arrangements amid a volatile policy environment, while also using them to both engage and counter China. Second, Japan has used official development assistance to stabilize and build defense capacity in Asian countries facing pressure from China. Third, Japan has increasingly militarized its dual-use technologies to enhance its ability to respond to Chinese activity in outer space.