With the end of the Cold War in the early 1990s, the division of the world disappeared, and an era began in which companies could freely conduct business globally by the rules under a liberal economy led by the United States. China, a neighboring country, has achieved dramatic economic growth, not only as the world's factory but also as a massive market with a population of 1.3 billion people. These achievements were made after it acceded to the WTO in 2001 following the reform and open-door policy from the 1980s. At the same time, China has also accelerated globalization. In the intervening 30 years, companies around the world have expanded their markets to the world as a whole and built optimal supply chains on a global scale to accommodate this expansion. As a result, international trade increased to $19.4 trillion in 2018, more than three times the level in 2001, and global GDP grew from $33.6 trillion in 2001 to $86.4 trillion in 2018, a 2.6-fold increase. The economy is so global and tightly connected that what happens on the other side of the globe immediately impacts the real economy.

The U.S.-China trade friction that began in 2018 has shaken the global supply chain. The economic conflict that followed has evolved into a confrontation of state systems - free and democratic capitalism versus state capitalism - and the importance of economic security has attracted keen attention worldwide. In the past, political conflicts have made relations between nations difficult, as in the case of Japan-China relations. Meanwhile, private-sector-driven economies, distanced from politics, have calmed the situation by strengthening ties. In other words, political conflicts have been linked with economy-driven security, not economic security. There is no turning back on global supply chains. It is important for the business community to improve the global industrial competitiveness of Japanese companies while being actively involved in the government's economic security policymaking. In addition, I hope the business community will contribute to Japan's security in regions like Africa, where the population is growing and future economic development is promising. This contribution can be made by proactively working toward: developing local economies, including the development of local human resources, which will serve as the foundation for national growth; and establishing sound relations between Japan and the African region.