Presidential Office Responds to China's Opposition to IPEF Membership: "We Will Also Build Supply Chains with China"

"Prepared by the General Negotiation Headquarters"... Korean Government Emphasizes 'Open Cooperation Body'

[Image source=Yonhap News]

[Asia Economy Reporter Baek Kyunghwan] The government stated that in response to China's backlash over South Korea's decision to join the Indo-Pacific Economic Framework (IPEF), it will "establish a framework to manage stable supply chains with China through follow-up negotiations on the Korea-China FTA." China views the IPEF as an attempt to contain itself in the Indo-Pacific region, raising concerns about potential economic retaliation similar to the second THAAD incident.

On the 19th, a presidential office official said, "The Yoon Seok-yeol administration's diplomatic policy toward China is based on mutual respect," addressing China's sensitive reaction to South Korea's participation in the IPEF. The official added, "(IPEF) is a kind of platform for cooperation," and "the Trade Negotiations Headquarters will prepare for discussions on establishing a framework to manage supply chains with China."

Attention was also drawn to the fact that trade between the U.S. and China is increasing despite ongoing strategic competition. This suggests that the previously decoupled relationship is now re-coupling. The official said, "Going forward, supply chain networks will be extremely important, and issues such as advanced technology leakage and digital norms need to be quickly established as international standards," evaluating that "IPEF is positive in this regard."

Currently, China is strongly opposing South Korea's participation in the IPEF, stating that "preventing the risk of a new Cold War and opposing bloc confrontation are related to the fundamental interests of Korea and China." As the U.S. seeks to strengthen cooperation with allies on issues like advanced technology and supply chains while increasing pressure to contain China, it has targeted South Korea with pressure.

However, the South Korean government emphasizes that the IPEF is an "open cooperative body" that does not exclude any specific country. To prevent South Korea's participation from becoming a new source of diplomatic and trade conflicts between Korea and China, Kim Tae-hyo, the first deputy director of the National Security Office, also stressed the day before, "IPEF is about building a new economic and trade cooperation body centered on new trade issues, and it does not exclude China."