The trade battle amid South Korea and Japan is an indication that the global order “is now crashing,” as reported by Deborah Elms—Executive Director and Founder of the Asian Trade Centre. The two Asian giants are presently trapped in a trade battle that started in July when Japan limited exports of high-technology components to South Korea which are significant for manufacturing display screens and semiconductors. Ever since then, the two parties have intimidated to remove each other from their individual preferential list of reliance and trustworthy trade partners, making way for potentially extended licensing processes. Since things escalated, South Korea demolished a military intelligence-sharing truce with Japan.
Elms said to CNBC, “I feel that this Japan-Korea incident is an indication of what occurs when a system starts to fall down. You have trade battles that escalated and there is no brake anymore, so they drag into security disputes.” Elms projects comprise the RCEP (Regional Comprehensive Economic Partnership), as per to the Asian Trade Centre. She asserted that the tensions amid Tokyo and Seoul were “like two fellow citizens arguing over who planted the tree on the borderline that is now invading on both sides. While we are borderline on a tree that is on the borderline, there is a forest fire on the crest line.
On a similar note, earlier, South Korea departed from a military intelligence-sharing pact with Japan. In a new round in the diplomatic battle amid South Korea and Japan, Seoul counter-attacked by pulling out from a military intelligence-sharing truce with Tokyo. The GSOMIA (General Security of Military Information Agreement) was signed in 2016—which was meant to renew in this fall—and facilitated for more “flawless intelligence sharing” amid the two nations.