In the aftermath of the COVID-19 pandemic, Chinese consumers haven’t sustained the expected surge in spending as their economy reopened. As a result, China confronts a nexus of challenges, mainly stemming from a development model that appears to have reached its limits. This development holds significant consequences for the global stage, especially for South Korea.

Despite these implications, Chinese industrial policy, focusing on mercantilism, has steadily compelled South Korean exporters to diversify away from the Chinese market. China’s economic challenges are liable to accelerate this departure even more.