Geopolitical Risks and Supply Chains: The Case of Japan and China

On 21 May 2024, the Japan Chair at the Centre for Security, Diplomacy and Strategy (CSDS) hosted a closed-door meeting with a delegation from the Research Institute of Economy, Trade and Industry (RIETI), a leading think tank affiliated with the Ministry of Economy, Trade and Industry (METI) of Japan, led by Chairman Emeritus, Professor Shujiro Urata. The meeting was an opportunity to introduce a new study by Dr Daisuke Fujii, which aims to measure the impact of major geopolitical tensions on international trade, such as the decoupling of the United States (US) and China and/or Russia’s invasion of Ukraine. Using large-scale firm-to-firm supply chain data in Japan, the study simulates the impact of trade disruptions (both exports and imports) on the entire economy.

The “Japan Chair Cluster” meetings bring together Brussels-based experts and policy practitioners from the EU institutions, NATO, as well as relevant Embassy representatives interested in Japan and the broader Indo-Pacific region. The Cluster meets on an ad hoc basis when experts, academics and officials from the region visit Brussels, presenting their research and sharing their insights in a closed-door, informal fashion. The aim of the meetings is to inform the European policy community, raise awareness and steer the debate for regional security challenges, as well as to facilitate inter-personal exchanges to support Europe’s engagement with Japan and the Indo-Pacific.