Ishiba Pens Letter to Xi as Japan Aims to Avoid Trade Crossfire

(Bloomberg) --

A high-level Japanese delegation will deliver a letter from Prime Minister Shigeru Ishiba to Chinese leader Xi Jinping this week, as Tokyo strives to avoid getting caught in the crossfire of escalating trade friction between China and the US. 

Tetsuo Saito, the chief of the ruling party’s junior coalition partner Komeito, will deliver the letter during a three-day visit from Tuesday to meet with Liu Jianchao, the head of the International Department of the Chinese Communist Party, among other dignitaries.

“The prime minister told me that he would like me to deliver a letter, as it may take some time before he can visit China,” Saito told reporters on Monday.

The gesture highlights Japan’s desire to balance managing its relationships with China, its largest trading partner, and with the US, its sole formal security ally, as it proceeds with official trade negotiations with Washington seeking an exemption from sweeping tariffs imposed by President Donald Trump’s administration earlier this month.

China, which accounts for about 20% of Japan’s trade, has warned countries against cutting deals with the US that could undermine Beijing’s interests. Bloomberg recently reported that Washington wants its allies to curb trade with China as part of negotiations over tariffs.

When asked about China’s warning Tuesday, Japan’s top government spokesperson Yoshimasa Hayashi didn’t directly address the matter, instead saying that the tariff issue remains a top priority for the government.

Japan also has an array of bilateral disputes with China, including a continued ban by Beijing on seafood exports from Japan in response to Tokyo’s release of wastewater from the wrecked Fukushima Dai-ichi Nuclear Power Plant into the ocean. 

Japan and China agreed in 2024 to take steps toward restarting exports, but China is yet to officially reopen trade, saying that additional testing needs to be done. A second round of testing with China’s participation took place last week.

Saito said that the issue of seafood and a separate ban on beef imports into China from Japan would likely be raised during his meetings, which he said would be about building trust. 

“I hope to have a frank discussion about the concerns the Japanese people have toward China from a different perspective than governmental relations,” he said.

Saito deflected a question about the possibility of China making demands as trade negotiations between Japan and the US start, saying he will “explain Japan’s position on various issues,” without elaborating further.

The US has been pushing Japan for years to limit exports of machinery used to make semiconductors and other high-tech equipment.

Japan’s Hayashi on Monday declined to comment on the contents of Ishiba’s letter. 

“It’s necessary to increase areas of cooperation and coordination while resolving problems and matters of concern,” he said.

(Updates with additional reactions from Hayashi, details on US pressure)

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