27 May 2026

China welcomes the delegation of Japan, led by Ambassador Katsuhiko Takahashi, to Geneva for this Trade Policy Review. We thank Ambassador MAI Phan Dung for his comments on Japan’s trade policies as the Discussant. We also thank the Secretariat for the preparation work.

Trade and investment are major drivers of Japan’s economy. In 2025, China was Japan’s largest source of imports and second-largest export destination. China is also among the top destinations for Japan’s outward direct investment.

We appreciate Japan’s active engagement with various work of the WTO, especially its participation of the MPIA and actively seeking to integrate the E-commerce Agreement into the WTO legal framework.

The rules-based multilateral trading system provides the foundation for open and predictable global trade. At present, global trade is undergoing turbulence and the multilateral trading system is faced with unprecedented challenges. Major global economies bear responsibilities for safeguarding the multilateral trading system, and injecting greater certainty and stability into global trade.

In this regard, China notes with concern certain trajectory of Japan’s trade policy development. According to the Secretariat report, “economic security became an increasingly important driver of Japan’s policy development, continuing a trend observed in the previous review period”. This trend has affected the policy-making and implementation in trade and trade-related areas. Since Japan’s Economic Security Promotion Act fully entered into force in 2024, economic security considerations have been incorporated into a range of policies, including foreign investment screening, export control, intellectual property rights and trade remedy measures.

In its foreign investment review regime, Japan has lowered the threshold for prior notification, imposed stricter screening procedures in a broader range of sectors, and brought indirect shareholding and so-called “foreign government” influence under the scope of review. 

With regard to export-related measures, Japan has expanded the scope of export controls and imposed tighter restrictions on semiconductor manufacturing equipment.

In addition, certain trade measures adopted by Japan appear to be selective. For instance, in the automotive sector, adjustments to subsidy criteria have favored domestic battery manufacturers in Japan, while the related scoring mechanisms have placed foreign-invested clean energy vehicle producers at a competitive disadvantage. In the agricultural sector, increasing the minimum access volume for rice exclusively for a particular trading partner may affect market opportunities for other members.

Madam Chair,

Japan is deeply integrated into global value chains. Economic and trade linkages among members, along a global supply chain that is open and non-discriminative, are mutually beneficial. The over-extension of economic security, on the other hand, disrupts global supply chain and will lead to fragmentation, raise business costs and intervene with market operation.

China calls on Japan to remain committed to openness and non-discrimination that underpins the multilateral trading system, and take concrete actions for that purpose, including refraining from over-extending the concept of economic security and taking discriminatory measures. China looks forward to Japan making constructive contribution to global and regional development and to supporting the multilateral trading system.

Finally, I wish Japan a successful trade policy review.