South Korea is all set to reduce its dependence on Japan as the trade conflict escalates between the two countries. Since July 1, Japan restricted exports of raw materials vital for manufacture of memory chips and smartphone displays to South Korea.

In retaliation, South Korean Finance Minister Hong Nam-Ki has confirmed that the government is planning to reduce economic dependence on Japan’s exports and equipment industries. On Wednesday, a senior US diplomat also met with South Korean officials in order to help resolve the tensions building up.

So far, the US has not officially stepped in or commented on the issue. However, at risk is the global supply of memory chips and smartphone displays – key components used in tech industries, which would affect the US significantly if this issue escalates.