{"id":2207458,"date":"2024-12-10T08:00:23","date_gmt":"2024-12-09T23:00:23","guid":{"rendered":"https:\/\/koreapro.org\/?p=2207458"},"modified":"2024-12-09T18:06:31","modified_gmt":"2024-12-09T09:06:31","slug":"south-korea-holds-supply-chain-talks-with-china-amid-domestic-chaos","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/12\/south-korea-holds-supply-chain-talks-with-china-amid-domestic-chaos\/","title":{"rendered":"South Korea holds supply chain talks with China amid domestic chaos"},"content":{"rendered":"
South Korea and China held a <\/span>joint committee meeting<\/span><\/a> on Monday to discuss their 2015 free trade agreement. Both countries agreed to accelerate negotiations on service and investment provisions and committed to creating a more stable and predictable business environment for bilateral trade.<\/span><\/p>\n The meeting also addressed supply chain stabilization, with plans to continue hosting the South Korea-China Supply Chain Hotline next year. Although not directly discussed, the talks took place against the backdrop of China\u2019s <\/span>export controls<\/span><\/a> on critical dual-use materials, such as gallium and germanium, imposed on the U.S. last week amid intensifying global trade frictions.<\/span><\/p>\n WHY IT MATTERS<\/b><\/p>\n The meeting reflects South Korea\u2019s efforts to safeguard economic ties with its largest trading partner despite domestic political turbulence following President Yoon Suk-yeol\u2019s <\/span>martial law declaration<\/span><\/a> last week. The trade ministry\u2019s focus on cooperation with China aims to shield businesses from disruptions and bolster investor confidence in the face of lingering uncertainties.<\/span><\/p>\n China remains South Korea\u2019s largest trading partner, making stability in bilateral trade a top priority. By emphasizing cooperation on supply chain issues, the two countries aim to mitigate risks to industries heavily reliant on stable imports and exports, such as semiconductors and manufacturing.<\/span><\/p>\n China\u2019s export controls on critical materials have heightened tensions with the U.S. Chinese commerce minister Wang Wentao stated that Beijing\u2019s action was in response to Washington\u2019s \u201cweaponization of economic, trade and technological issues.\u201d As Washington\u2019s key ally in the Indo-Pacific, Seoul is seeking to mitigate economic fallout.<\/span><\/p>\n The U.S. <\/span>expanded export controls<\/span><\/a> targeting China\u2019s access to advanced semiconductor technologies, effective Jan. 1, 2025. Washington\u2019s export controls include restrictions on high bandwidth memory chips, requiring export licenses for shipments to 24 countries, including China. South Korea is not exempt from the U.S. <\/span>Foreign Direct Product Rule<\/span><\/a>, unlike Japan and the Netherlands.<\/span><\/p>\n