Japan Informs US of Policy to Withhold Participation in 'Huawei Exclusion' Clean Network

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the United States has requested South Korea not to use products from Chinese IT companies, it has been reported that Japan has informed the U.S. side of its policy to withhold participation in the 'Clean Network' initiative promoted by the Donald Trump administration, which aims to exclude Chinese companies from network businesses such as telecommunications.

On the 16th, Japan's Yomiuri Shimbun, citing multiple Japanese government officials, reported that the Japanese government conveyed to the U.S. side its policy to withhold participation in the Clean Network plan at this time. According to the report, during a meeting on the 6th between U.S. Secretary of State Mike Pompeo and Japanese Foreign Minister Motegi Toshimitsu in Tokyo, Pompeo mentioned the Clean Network plan and encouraged Japan to join, but during negotiations between the two countries, Japan stated that it "cannot participate in a framework that excludes specific countries."

Yomiuri reported that Japan conveyed to the U.S. that it is difficult to participate in the Clean Network in its current form and that it would reconsider if the plan is revised.

Japan has already effectively excluded China's Huawei from its 5G business. It is reported that the Japanese government expressed to the U.S. side its intention to respond in coordination with the U.S. if there are security concerns. A senior Japanese government official said, "If we participate in the U.S. framework to exclude China, there is a possibility that China will file a complaint with the World Trade Organization (WTO) and win." Yomiuri suggested that these concerns were conveyed to the U.S. side.

This decision by Japan appears to stem from concerns that Sino-Japanese conflicts could intensify amid Japan's higher economic dependence on China compared to the U.S. While formally not participating in the U.S. Clean Network plan, Japan seems to be adopting a strategy to maintain a vigilant stance toward China. Yomiuri analyzed that since a state visit by Chinese President Xi Jinping to Japan is also planned, Japan likely aimed to avoid political provocation.

The U.S. has also requested South Korea to join the Clean Network, and on the 14th of this month, the Clean Network was an important agenda item discussed at the 5th Korea-U.S. High-Level Economic Consultations, attended by Lee Tae-ho, South Korea's Deputy Foreign Minister, and Keith Krach, U.S. Under Secretary of State for Economic Growth, Energy, and the Environment, as chief representatives.

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