South Korean President Moon Jae-in (far right) and U.S. President Joe Biden (far left) at their summit at the White House on May 21
South Korean enterprises announced their 44 trillion won investment plan at the Korea-U.S. Business Roundtable the U.S. Department of Commerce hosted on May 21. Under the circumstances, China’s response is drawing attention.
The closer U.S.-South Korea cooperation in the semiconductor, electric vehicle (EV) battery and biotech industries is likely to irritate China. In the past, China inflicted economic retaliation against South Korea with regard to U.S. THAAD deployment in South Korea.
According to trade experts, the South Korean government needs to adjust its ties with China at the upcoming summit with it in that China constitutes a large portion in the South Korean economy. “The United States is in pursuit of long-term collaboration and technological advancement, China is in pursuit of a more immediate and visible outcome, and South Korea needs to tactfully respond to both,” one of them said.
“Building plants in China with universal technologies while cooperating with the United States in sectors requiring advanced technologies can be an example of the tactful response,” said Sogang University honorary professor Ahn Se-young, adding, “A more prudent approach is necessary when it comes to investment in China that is less protected by the Chinese government.”