Semiconductors, Trade and High-tech Cooperation

Show Notes

Semiconductors, Trade and High-tech Cooperation: Economic, political and supply chain pressures

Panellists:

Martijn Rasser, Managing Director, Datenna

Yasuhiko Ota, Columnist and TV news commentator, Nikkei

Moderator:

Rem Korteweg, Senior Research Fellow, Clingendael Institute

This podcast episode was recorded on 10 July 2023.

The 2023 edition of the AIG Global Trade Series explores the extent and impact of regionalisationon the global trade landscape.

As critical enablers of economic growth, technological development and national security, semiconductors have become an area of intense competition between states.  But the insecurity of semiconductor supply chains exposed during the Covid 19 pandemic, and highlighted since by growing geopolitical tension, is also driving new forms of international cooperation around semiconductor production and supply.  What is the balance between these two trends and how is it reflected in global trade relations?

This episode discusses the geopolitics of semiconductor production – including export controls, state subsidies, friend shoring and new multilateral initiatives – and how they are reflected in trade and trade policy.  The focus is on two key players in the field: Japan and the USA.

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The Global Trade Series is a collaboration between AIG and the following international organisations with leading expertise on global trade: the ⁠⁠Aspen Institute Germany⁠⁠; ⁠⁠Chatham House (UK)⁠⁠; ⁠⁠CEBRI - the Brazilian Center for International Relations⁠⁠; the ⁠⁠Clingendael Institute⁠⁠ (The Netherlands); ⁠⁠Institute of International Economic Law at Georgetown University Law Center ⁠⁠(US); ⁠⁠ISPI - the Italian Institute for International Political Studies⁠⁠; the ⁠⁠Jacques Delors Institute⁠⁠ (France); ⁠⁠RIETI - the Research Institute of Economy, Trade and Industry⁠⁠ (Japan) and the ⁠⁠St. Gallen Endowment for Prosperity through Trade⁠⁠ (Switzerland). 

The views and opinions expressed in this podcast series are those of the speakers and do not necessarily reflect the official policy or position of American International Group, Inc. or its subsidiaries or affiliates (“AIG”). Any content provided by our speakers are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything. AIG makes no representations as to accuracy, completeness, correctness, or validity of any information provided during this podcast series and will not be liable for any errors, omissions, or delays in this information or any losses injuries, or damages arising from its use.

What is AIG Global Trade Series?

Back to the Future: a New Era of Managed Trade?

Globalisation’s next chapter is being written, driven by concerns about supply chain risks. The global trade in goods is increasingly seen through a security prism in capitals around the world and governments are developing new policies to reduce unwanted dependencies, seek new sources of leverage and guarantee supplies. Trade links are being reordered as policymakers scramble to secure access to strategic materials and positions in global value chains. Meanwhile, geopolitical turbulence and climate ambitions are giving rise to industrial policies, sanctions and a growing use of subsidies.

From investment screening to quotas to export controls, policymakers are proposing an increasing number of tools and policies to steer trade and investment flows. But despite worries about protectionism and fragmentation, trade continues as the private sector manages risk by embracing diversification. Elections in the US, EU, Mexico, UK, Indonesia, India and elsewhere may also lead to a reordering of the global politics of trade. Has the global trade system entered an era of managed trade? What will it mean for regional approaches to trade, and what does it mean for multilateralism and the WTO? Ultimately, the main question could be: who is in the driving seat in this brave new world for trade?