This study identifies the core of Korea’s economic statecraft as (1) diversification of the supply chain of high-tech industries to proactively mitigate vulnerability to economic coercion, (2) the pursuit of technological sovereignty to increase self-sufficiency in advanced technologies, (3) governance reforms to strengthen supply chain resilience, and (4) industrial policies to enhance the competitiveness of advanced industries. The four strategies mentioned above all have in common that they are predicated on the strategic utilization of high technology. Based on these traits, I define Korea’s new economic security strategy as techno-economic statecraft. Korea’s techno-economic statecraft has two features. First, Korea utilizes high technology as a nexus between economy and security. Second, Korea uses high technology as a nexus to link domestic and foreign policies.

While Japanese business interests support the export of high-technology items and the transfer of technology from Japan to China, these economically motivated actions may have direct and indirect impacts on Japan's national security. First, the transfer of dual-use technology to China may directly help China's military buildup. Second, high-tech exports and technology transfers may have an indirect effect by eroding Japan's technological advantages vis-à-vis China. In this article I place these concerns into a historical context and analyze the current challenges to Japan's export control policies. I offer an overview of the Japan-China trade relationship, with a special focus on high-tech trade. I then discuss changes in Japan's export controls regarding China, based on heightened security concerns. Evidence indicates that the Japanese government is ill equipped to deal with “technology leakage,” which is accelerating the erosion of Japan's technological supremacy and is not covered by its current export control regime.