China last week slapped special tariffs on Japanese cars, mobile phones and air conditioners in retaliation for Japan's "safeguard" import restrictions against Chinese farm products. It is the first time that the two nations have openly engaged in a trade row, although in the past there have often been quarrels over fishing problems. The dispute, if mishandled, could set back bilateral economic relations and foster a climate of confrontation.
However, the view that Japan and China are entering a period of "trade wars" is exaggerated. Now is a time when cool heads must prevail on both sides. Officials from the two governments should sit down at the negotiating table at an early date to work out a mutually acceptable settlement.
The Japanese government says Chinese retaliation for the safeguards -- emergency import restrictions allowed by the World Trade Organization -- is in violation of WTO rules and runs counter to the spirit of Japan-China trade agreements. Such formalistic reasoning, however, will not convince China, which has already suffered losses in its exports of leeks, mushrooms and rushes. Since China is not yet a WTO member, it is impossible to settle the dispute through the international trade regulatory body.