Atlantic Council SCOWCROFT CENTER FOR STRATEGY AND SECURITY
ISSUE BRIEF
Expanding the US-Japan economic security partnership: Engaging allies and partners SEPTEMBER 2024 AMY SEARIGHT
Executive summary
Economic security has emerged as a national security priority in Tokyo and Washington as both confront the challenges posed by China’s civilmilitary fusion and economic coercion. Japanese and US policymakers have turned to industrial policy to support domestic manufacturing and research in strategic sectors like semiconductors. They have sought to stem leading-edge technology flows to China by imposing export restrictions and other measures while seeking to build more reliable, resilient supply chains for critical minerals and other key inputs. The alignment of Tokyo and Washington on their strategic views of China and the convergence of their economic security priorities has created a new era of alliance cooperation on these issues. The United States and Japan have made remarkable progress in this economic security partnership. However, the real test lies in whether this partnership can serve as a building block for broader cooperation with likeminded allies and partners. Achieving shared goals for economic security will require close alignment with other advanced economies to forge collective economic resilience and a coordinated approach to protecting critical and emerging technologies. Washington and Tokyo should build upon existing economic security discussions in the Group of Seven (G7) framework to launch “G7 Plus” agreements on economic coercion and export controls. The Scowcroft Center for Strategy and Security works to develop sustainable, nonpartisan strategies to address the most important security challenges facing the United States and the world. The Center honors General Brent Scowcroft’s legacy of service and embodies his ethos of nonpartisan commitment to the cause of security, support for US leadership in cooperation with allies and partners, and dedication to the mentorship of the next generation of leaders.
Success in strategic competition with China also requires a robust strategy of economic engagement with Indo-Pacific countries, particularly in Southeast Asia, where China’s economic influence rises. The United States and Japan should intensify efforts to deliver an economic growth agenda to regional countries increasingly finding their economic options limited to China. They can leverage Japan’s strengths as a regional leader in infrastructure development and trade to realize the vision laid out in the Indo-Pacific Economic Framework for Prosperity and the Philippines’ Luzon Economic Corridor. They should also revisit discussions on market access with key Indo-Pacific partners. Sectoral trade deals in critical minerals and other strategic sectors would help build resilient, diversified supply chains, signaling that the United States and Japan remain open to mutually beneficial economic linkages.