Research On The New Round Of Trade Friction Between Japan And South Korea

With their total trading volumes topping the list in the world,Japan and South Korea are both major trading countries characterized with their intimate trade relations and frequently occurred trade disputes with each other.In addition to economic conflicts,some intricate problems left over by history,such as the compensation for forced Korean labor during the Second World War and the dispute over an agreement on “comfort women”.In 2019,such political issues carried over from the past finally fomented the standing economic conflicts between Japan and South Korea.By virtue of its technological superiority,Japan tried to squash South Korea's semiconductor industry,which is of great significance to South Korea's national economy,by imposing more stringent regulations on export.Furious at the enormous loss caused by the trade sanctions levied by Japan,South Korea was forced to take necessary countermeasures,further contributing to the trade dispute between the two countries.As a result,the political and economic circumstances of both countries were deteriorated.Trade frictions have occurred frequently in the world for the past few years,and China is also a victim at present.Since 2018,the Sino-US trade friction,though having been eased for several times,have still been in a stalemate.Therefore,this paper,with the purpose of drawing lessons,is mainly concerned with the in-depth study of trade friction between Japan and South Korea.Based on the theory of comparative advantage,the theory of strategic trade policy and the theory of intra-industry trade,this paper tries to research the trade friction between Japan and South Korea since July 2019.The theory of comparative advantage elucidates the extant problems in the trade structure of Japan and South Korea,that is,South Korea has focused too much on the midstream of the industry chain of semiconductor while neglected the technical gap in the upper reaches,which is the reasonable way to maximize the profits under the theoretical model of comparative advantage.Through the study of theory of strategic trade policy,this paper believes that profit is not the only indicator in the actual trade association.Trade is a significant manifestation of the economic level and international competitiveness of a countries,and that was also the fundamental reason why Japan stirred up the trade friction.By feat of the theory of intra-industry trade,this paper analyzes the intra-industry trade with horizontal difference between Japan and South Korea,provides the research of trade structure with theoretical basis,and further explains the problems in the trade contacts between the two countries.The foregoing theories offer theoretical support for the analysis on the structure of commercial intercourse and open questions between Japan and South Korea as well as the causes and evolution process of the trade frictions.By summarizing the causes,evolution process and economic impact of the trade frictions between Japan and South Korea,this paper draws the following conclusions:first,as a major indicator concerning a country's macro development,scientific and technological level can serve as the power of defence for economic and political development;second,in addition to achieving economic profits,the rational distribution of the industrial chain of international trade and commerce as well as the diversified pursuit of supply and demand of tradable products are also indicators of healthy development of trade;third,trade frictions not only bring negative effects to economic development,but sour the international relations.It is out of question that trade frictions are doomed to derive more unpredictable political and economic conflicts which may bring uncertain impact on other countries and even the world economy.