Japan is quietly resisting efforts by the United States to enlist it in a broader economic alliance aimed at pressuring China, according to current and former Japanese government officials. Tokyo remains firm in preserving its trade ties with Beijing, which remains Japan’s largest trading partner and a vital source of goods and raw materials.
Japan Vs US
As tensions escalate between Washington and Beijing, the U.S. has sought to rally allies in forming a united economic front to counter China’s growing global influence. However, Japanese officials—speaking on condition of anonymity—indicated that Tokyo is cautious about jeopardizing its deep economic interdependence with China, even as it works to strengthen ties with the United States.
Balancing U.S. Relations and China Ties : Japan Vs US
Japan finds itself in a delicate balancing act. On one hand, it is eager to resolve trade tensions with the U.S. by addressing concerns in bilateral areas such as automotive exports and agricultural imports. On the other, it is wary of being drawn into any U.S.-led economic strategy that could alienate China.
With a 90-day reprieve from U.S. tariffs currently in place, Tokyo is racing against the clock to finalize a trade deal with Washington. One Japanese official said there is hope of reaching an agreement around the time of the Group of Seven (G7) summit in June.
“Japan wants to show progress in trade talks with the U.S., but not at the cost of antagonizing China,” the official explained. “We are pursuing a diplomatic middle ground that allows us to maintain strong economic relations with both powers.”
Japan’s Trade Stakes
Japan’s economic exposure to China is significant. In 2024, bilateral trade between the two nations exceeded $300 billion, with China being a key market for Japanese automobiles, electronics, and machinery. Additionally, Japan relies heavily on Chinese imports of raw materials and components used across its manufacturing sectors.
Despite the U.S. push to decouple supply chains from China, Japanese businesses have continued to deepen their engagement in the Chinese market. Many Japanese firms operate factories and joint ventures in China, serving both domestic Chinese consumers and international exports.
Given this intricate economic entwinement, Japanese policymakers view an anti-China economic bloc as potentially harmful to their national interests.
Seeking Common Ground with the U.S.
To avoid direct confrontation with Washington, Japan is instead focusing on resolving bilateral trade concerns. Discussions have centered on reducing tariffs, improving market access for American agricultural goods, and encouraging Japanese carmakers to expand investment in U.S. manufacturing.
“Japan is committed to a fair and reciprocal trade relationship with the U.S.,” said a former Japanese trade negotiator. “But we are not interested in weaponizing trade against China.”
Tokyo’s approach aligns with the strategies of other Asian nations that are wary of choosing sides in a potential U.S.-China economic cold war. Instead, many countries are opting for a more neutral stance that safeguards their trade relationships with both powers.
Outlook Ahead of G7 Summit
The upcoming G7 summit, set to take place in June, is seen as a potential milestone for Japan-U.S. trade talks. Japanese officials are optimistic that a framework agreement could be announced during or shortly after the summit, providing a roadmap to avoid renewed tariffs.
However, they remain cautious about any efforts to insert geopolitical language targeting China into the deal.
“We support free and open trade, but that doesn’t mean cutting off ties with our largest trading partner,” one official noted.
As global economic dynamics continue to shift, Japan’s response underscores its strategic goal: maintaining strong ties with both the U.S. and China while avoiding being pulled into an economic confrontation that could harm its long-term prosperity