GT Voice: What is needed to maintain the momentum of China-SK trade?

Illustration: Chen Xia/GT

Trade between China and South Korea has reached a critical juncture amid complex geopolitical pressures, placing its future trajectory under intense scrutiny. At the heart of this issue is the urgent need to establish an effective communication bridge, which will serve as the basis for a practical cooperation mechanism. This effort is particularly vital in key strategic sectors, such as semiconductors.

South Korea’s exports grew 8.2 percent year-on-year in 2024, setting a new annual record for robust semiconductor shipments, according to data compiled by the Ministry of Trade, Industry and Industry. Energy of the country, Yonhap news agency reported Wednesday. By destination, exports to China, the largest trading partner, increased 6.6% to $133 billion, driven by chips, petrochemicals and mobile devices.

The data not only highlights how close economic and trade relations between China and South Korea are, but also highlights the potential for future cooperation between the two countries.

There is no doubt that the sustainable and healthy development of economic and trade relations between China and South Korea is of significant importance to the two countries. As China is South Korea’s largest trading partner, its market demand plays an undeniable role in driving the South Korean economy. Meanwhile, South Korea’s technological advantages and product competitiveness in areas such as semiconductors, petrochemicals and mobile devices provide high-quality supply to the Chinese market. Therefore, deepening economic and trade cooperation between China and South Korea not only helps South Korea cope with downward economic pressure, but also provides an important path to promote regional prosperity.

However, it is also important to note that in the current context of complex and changing geopolitical dynamics, trade between China and South Korea faces unprecedented challenges. In particular, the United States, for strategic reasons, has implemented strict export controls and technological blockades on high-end chip technology, which poses significant obstacles to cooperation between China and Korea of the South in the field of semiconductors.

The semiconductor industry is not only one of the pillars of the South Korean economy, but also a key driver of its export growth, having a crucial impact on the overall performance of the South Korean economy . In 2024, semiconductor exports increased 43.9% year-on-year to $141.9 billion, surpassing the previous record of $129.2 billion set in 2022, according to Yonhap.

Yet competitive dynamics between China and South Korea in some sectors have hindered bilateral trade and technology cooperation to some extent.

In light of this, how to strengthen bilateral cooperation between China and South Korea in 2025, especially in the semiconductor industrial chain, becomes particularly crucial for economic ties. This is not only related to the current economic interests of the two countries, but also represents a strategic configuration for long-term future development.

Against this background, it is even more essential for China and South Korea to strengthen their coordination and communication and establish a closer cooperation mechanism to explore diversified cooperation models to enhance resilience and competitiveness. of the semiconductor industrial chain.

It is precisely in a difficult environment that the role of the Regional Comprehensive Economic Partnership (RCEP) becomes particularly evident. The agreement can provide a moderately accessible and feasible platform for China and South Korea. Under this framework, the two countries can establish closer political communication mechanisms, explore more open trade policies, promote transparency in technology export approval processes, and reduce the impact of non-tariff barriers on technological cooperation. .

This is particularly crucial in the semiconductor sector, where there is significant potential and urgent need for collaboration between China and South Korea. By integrating their respective strengths, the two countries can achieve technological breakthroughs and cost reductions through cooperation, thereby improving the overall transformation level of the semiconductor industry and establishing a stable and stable industrial chain cooperation model. effective.

We believe that once substantial progress is made in this critical area, the positive effects will extend to other areas, providing momentum for broader economic and trade cooperation between the two countries.