Japan-China trade chiefs chat briefly at APEC; first since dispute

Japan's Economy, Trade and Industry Minister Yoji Muto and China's Commerce Minister Wang Wentao held a brief meeting of about 15 minutes on the sidelines of the APEC trade ministers meeting in Gyeongju. This was the first high-level direct contact between the two sides after Beijing introduced new export curbs on Japanese semiconductor manufacturing equipment in January 2026. A METI spokesperson described the atmosphere of the meeting as 'constructive but cautious'.

Muto told reporters after the meeting that 'the supply chain interdependence between China and Japan is of critical importance to both economies; the channel has opened for concrete working-level engagement'. Wang in his official statement said 'China attaches importance to the stability of the global trade system; we are open to constructive dialogue within the multilateral framework'. Mitsubishi UFJ Morgan Stanley analyst Akira Niwa commented that 'direct engagement is itself a positive signal; but the curbs on electronics manufacturing equipment have not yet shown concrete improvement'.

The Tokyo Stock Exchange Nikkei 225 index rose 1.4 per cent on the news; supply chain stocks such as Tokyo Electron, Disco and Screen Holdings saw clear buying interest. Japanese exports to the Chinese semiconductor equipment market were worth approximately USD 14.2 billion in 2024; Beijing's January curbs affect roughly 40 per cent of that amount. The next step is planning additional ministerial talks at the Asia-Pacific Economic Cooperation meeting in Tokyo in September.