Pedestrians walk past billboards bearing the flags of Japan and the Republic of Korea in Tokyo, Japan, on August 2 (XINHUA)
A trade dispute between Japan and the ROK has continued to escalate since July 4, when Japan tightened restrictions on exports of three important materials critical for making semiconductors and display screens. That was followed by the two countries' removal of each other from their respective export control whitelists, which is an index of trusted trade partners. The ROK was the only Asian country on Japan's list.
Behind the tension is the legacy of Japan's colonial occupation of the ROK in the first half of the 20th century. The trade spat has not only taken a toll on bilateral business ties but also spilled over and had regional and global repercussions.
A policy dialogue between Japan and the ROK was held in Tokyo on December 16. Although no settlement was reached on the sharp differences regarding Japanese restrictions on hi-tech exports, both sides showed a willingness to continue talks.