{"id":2205258,"date":"2024-05-27T19:08:17","date_gmt":"2024-05-27T10:08:17","guid":{"rendered":"https:\/\/koreapro.org\/?p=2205258"},"modified":"2024-05-28T12:51:30","modified_gmt":"2024-05-28T03:51:30","slug":"south-korea-china-summit-meeting-highlights-opportunities-and-challenges","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/05\/south-korea-china-summit-meeting-highlights-opportunities-and-challenges\/","title":{"rendered":"South Korea-China summit meeting highlights opportunities and challenges"},"content":{"rendered":"

As South Korea seeks to balance its economic interests with China and its security alliance with the U.S., the <\/span>bilateral meetings held<\/span><\/a> on the sidelines of the trilateral ROK-Japan-China summit highlight the potential risks and opportunities associated with deepening ties with Beijing.<\/span><\/p>\n

The resumption of the ROK-China Free Trade Agreement (FTA) Phase 2 negotiations and the revival of the ROK-China Investment Cooperation Committee demonstrate Seoul\u2019s desire to expand economic collaboration with its largest trading partner.<\/span><\/p>\n

Additionally, the establishment of new dialogue mechanisms, such as the Korea-China Diplomatic and Security Dialogue and the Korea-China Export Control Dialogue, spotlights both sides\u2019 commitment to enhancing communication and cooperation in key areas.<\/span><\/p>\n

These platforms provide an opportunity for South Korea and China to discuss and coordinate on issues of mutual concern, including regional security and supply chain management.<\/span><\/p>\n

\"\"

Samsung Electronics Chairman Lee Jae-yong (left) meets with Chinese Premier Li Qiang at Shilla Hotel in Seoul, May 26, 202<\/span><\/i>4 | Image: Samsung Newsroom<\/a><\/p><\/div>\n

ECONOMIC RELATIONS<\/b><\/p>\n

The <\/span>resumption<\/span><\/a> of the ROK-China FTA Phase 2 negotiations, which aim to expand trade liberalization to service and investment sectors, presents both opportunities and challenges for South Korea.<\/span><\/p>\n

On the one hand, the successful conclusion of these stalled negotiations could open up new markets and opportunities for South Korean companies in the cultural, tourism and legal sectors.<\/span><\/p>\n

For instance, South Korean entertainment companies could <\/span>benefit<\/span><\/a> from increased access to the Chinese market, while local law firms could expand their services to Chinese clients. Additionally, the liberalization of the tourism sector could increase the number of Chinese tourists visiting South Korea, providing a boost to the country\u2019s tourism industry.<\/span><\/p>\n

However, increased competition from Chinese companies in these sectors could pressure South Korean firms, particularly small and medium-sized enterprises, that may struggle to compete with larger rivals. Chinese investment could also lead to the <\/span>acquisition<\/span><\/a> of South Korean companies or the transfer of sensitive technologies and intellectual property.<\/span><\/p>\n

The revival of the Korea-China Investment Cooperation Committee, which has been suspended for 13 years, is another significant development in bilateral economic relations. The committee\u2019s reactivation could help facilitate greater investment flows between the two countries and address issues faced by South Korean companies operating in China.<\/span><\/p>\n

However, South Korean firms investing in China still face <\/span>various risks<\/span><\/a>, including intellectual property theft, forced technology transfers, non-market barriers and unfair competition from state-supported Chinese enterprises.<\/span><\/p>\n

Additionally, the ongoing U.S.-China trade dispute and the potential for further economic decoupling could create additional <\/span>uncertainties<\/span><\/a> for South Korean businesses with exposure to both markets.<\/span><\/p>\n

Supply chain management is another critical aspect of South Korea-China economic relations, particularly given the disruptions caused by the COVID-19 pandemic to global supply chains and the increasing geopolitical tensions in the region.<\/span><\/p>\n

The newly established Korea-China Export Control Dialogue aims to enhance cooperation in this area, helping to ensure stable access to critical <\/span>materials<\/span><\/a> and <\/span>components<\/span><\/a> for South Korean industries. This is especially important for sectors such as semiconductors, where South Korea relies heavily on imports from China for certain raw materials.<\/span><\/p>\n

However, this new dialogue mechanism could increase tensions between Seoul and Washington. The U.S. <\/span>granted<\/span><\/a> South Korean battery producers a two-year grace period for applying U.S. Foreign Entity of Concern regulations on graphite, addressing a key uncertainty for their expansion in North America due to supply chain vulnerabilities.<\/span><\/p>\n

While the Export Control Dialogue may provide South Korean battery and chip manufacturers a temporary reprieve, it has the potential to prolong South Korea\u2019s efforts to diversify its supply chains and reduce its dependence on China for critical inputs.<\/span><\/p>\n

\"\"

South Korean foreign minister Cho Tae-yul (left) meets with his Chinese counterpart Wang Yi in Beijing, May 13, 2024 | Image: ROK Ministry of Foreign Affairs<\/a><\/em><\/p><\/div>\n

DIPLOMATIC AND SECURITY COOPERATION<\/b><\/p>\n

The establishment of the Korea-China Diplomatic and Security Dialogue demonstrates a commitment to enhancing bilateral cooperation on regional security issues, including the North Korean nuclear threat.<\/span><\/p>\n

The dialogue, which involves high-level officials from both countries\u2019 foreign and defense ministries, provides a platform for regular communication and coordination on security matters.\u00a0<\/span><\/p>\n

This is particularly important given North Korea\u2019s continuing development of its nuclear, missile, drone and space-based reconnaissance capabilities.<\/span><\/p>\n

South Korea and China have a shared interest in maintaining stability on the Korean Peninsula, but they have sometimes differed in their approaches to addressing the North Korean nuclear threat. While the Yoon administration has emphasized the importance of <\/span>deterrence and pressure<\/span><\/a>, China has prioritized dialogue and engagement<\/span><\/p>\n

The new diplomatic and security dialogue could help bridge these differences and facilitate a more coordinated response to the North Korean issue. However, its effectiveness will depend on both countries\u2019 willingness to compromise and find common ground. It is unclear whether either Seoul or Beijing will be able to do this in the current geopolitical climate.<\/span><\/p>\n

One potential challenge is Taiwan and South Korea\u2019s stance on its <\/span>\u201cOne China\u201d policy<\/span><\/a>. China views Taiwan as an integral part of its territory and has increasingly pressured other countries, including South Korea, to adhere to its <\/span>\u201cOne China\u201d principle<\/span><\/a>, which holds that there is only one sovereign Chinese state and that Taiwan is a part of China.<\/span><\/p>\n

While South Korea has typically maintained a strategic ambiguity on this issue, the growing tensions in the Taiwan Strait and the intensifying U.S.-China rivalry have made it more <\/span>difficult<\/span><\/a> for Seoul to maintain that course.<\/span><\/p>\n

Explicitly endorsing China\u2019s position on Taiwan would strain Seoul\u2019s alliance with Washington and damage its credibility as a democratic partner in the region. However, aligning with the U.S. will likely result in economic and political retaliation from Beijing, similar to the <\/span>Terminal High Altitude Area Defense (THAAD) dispute<\/span><\/a> from 2016 to 2017.<\/span><\/p>\n

While South Korea will likely seek to engage in regular dialogue with Beijing to maintain smooth relations with China and its own independent foreign policy, it will become increasingly untenable for South Korea to maintain its position as tensions between the U.S. and China continue to escalate.<\/span><\/p>\n

\"\"

Works by ceramic artists from China on display at the ninth Korea-Japan-China Trilateral Summit, May 26, 2024<\/span> | Image: ROK Presidential Office<\/a><\/em><\/p><\/div>\n

CULTURAL AND PEOPLE-TO-PEOPLE EXCHANGES<\/b><\/p>\n

Cultural and people-to-people exchanges between South Korea and China have faced significant challenges in recent years, particularly due to the impact of the COVID-19 pandemic and <\/span>previous Chinese restrictions<\/span><\/a> on Korean cultural content.<\/span><\/p>\n

The pandemic has severely limited travel and in-person interactions between the two countries, hindering tourism, student exchanges, and other forms of cultural diplomacy. This has affected the economies of both nations and slowed down the pace of bilateral cooperation and understanding.<\/span><\/p>\n

Prior to the pandemic, the relationship between South Korea and China had already experienced tensions related to the Korean Wave, or Hallyu, which refers to the global popularity of South Korean entertainment, music and other cultural products.<\/span><\/p>\n

In 2016, China imposed unofficial restrictions on Korean cultural content and entertainment exports in apparent retaliation for South Korea’s decision to deploy the U.S. THAAD missile defense system. These restrictions, which lasted for several years, <\/span>significantly impacted<\/span><\/a> the Korean entertainment industry and highlighted the vulnerability of cultural exchanges to political and economic disputes.<\/span><\/p>\n

These issues have had a lingering impact on people-to-people exchanges between South Korea and China, with <\/span>both<\/span><\/a> sides<\/span><\/a> losing trust in the other. The bilateral meeting between President Yoon and Premier Li also covered the resumption of cultural and tourism cooperation, as well as the expansion of exchanges in fields such as education and youth programs.<\/span><\/p>\n

As the two countries seek to improve bilateral relations, there may be opportunities to revitalize cultural diplomacy and promote greater understanding and cooperation between the Korean and Chinese peoples.<\/span><\/p>\n

However, this will likely require sustained effort and investment from both governments, as well as a commitment to insulating cultural exchanges from political and economic tensions. Considering the <\/span>deep-rooted animosity<\/span><\/a> that has <\/span>taken root<\/span><\/a> between Koreans and Chinese, this effort will prove challenging.<\/span><\/p>\n

OUTLOOK<\/b><\/p>\n

South Korea\u2019s relationship with China will likely remain a critical focus of its foreign policy in the coming years. While there are significant opportunities for economic cooperation and cultural exchange between the two nations, there are also substantial risks and challenges that will require careful management and diplomacy.<\/span><\/p>\n

On the economic front, the resumption of the Korea-China FTA Phase 2 negotiations and the revival of the Investment Cooperation Committee offer the potential for expanded trade and investment ties. Similarly, the newly established diplomatic and security dialogue provides a platform for enhanced cooperation on regional security issues.<\/span><\/p>\n

The trajectory for South Korea-China relations will depend on the ability of both countries to engage in frank and constructive dialogue, build trust and mutual understanding, and find ways to cooperate in areas of shared interest while managing differences and tensions.<\/span><\/p>\n

However, it remains to be seen if the two countries will be able to overcome their entrenched views and mutual suspicions.<\/span><\/p>\n

Edited by Alannah Hill\u00a0<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Defense & Security<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

As South Korea seeks to balance its economic interests with China and its security alliance with the U.S., the bilateral meetings held on the sidelines of the trilateral ROK-Japan-China summit highlight the potential risks and opportunities associated with deepening ties with Beijing. 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