[30 Years of Korea-China Diplomatic Relations]③ Woo Tae-hee "China Needs Carrot Instead of Stick for Hanhanryeong"

On-site Command During Korea-China FTA Signing
"Urgent Need for Workforce Development in the 4th Industrial Sector"

Woo Tae-hee, Executive Vice President of the Korea Chamber of Commerce and Industry, is speaking at a meeting with the Seoul Mayor held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the 13th. Photo by Moon Ho-nam munonam@

"From now on, the Korea-China trade relationship must additionally consider the factor of the global industrial economic order. The U.S.-centered global supply chain construction, the Chip4 alliance, and carbon neutrality issues should no longer be seen as mere external variables but as endogenous variables that must be directly controlled."

Woo Tae-hee, Executive Vice President of the Korea Chamber of Commerce and Industry, said this in an interview with Asia Economy ahead of the 30th anniversary of Korea-China diplomatic relations. He stated, "China needs a carrot instead of the whip of the Hallyu ban (Hanhanryeong)." Vice President Woo is a trade expert who led the field as Director-General of Trade Negotiations at the Ministry of Trade, Industry and Energy during the conclusion of the Korea-China Free Trade Agreement (FTA) in 2015.

Regarding concerns over China's economic retaliation following the decision to attend the preliminary meeting of the U.S.-led Chip4 alliance, he said, "The semiconductor industry involves tremendous international division of labor, so Korea has no choice but to join." However, he advised, "Korea must clearly communicate to China that it is a major investor in China's semiconductor industry and a victim of the 'Made in China 2025' strategy, which is one of the causes of U.S.-China conflicts, and that there have been almost no preferential measures for Korea since the Korea-China FTA was signed."

On the retreat of exchanges between the two countries due to the deployment of THAAD (Terminal High Altitude Area Defense), he emphasized, "It is important to highlight that retaliatory measures affect not only Korea but also other foreign companies, and close cooperation is needed to prevent similar situations from occurring again." He added, "To this end, a process must be established that can consistently persuade the other party based on clear principles."

Regarding the second phase (services and investment) negotiations of the Korea-China FTA, which began in March 2018, he said, "Recently, China has been restructuring its economy around the domestic market and promoting a new foreign investment opening strategy, presenting favorable opportunities for us." He urged, "We should open the Chinese service market centered on sectors where we excel, such as tourism, culture, healthcare, and construction, to expand opportunities for Korean companies to enter." Furthermore, he noted, "The Regional Comprehensive Economic Partnership (RCEP), which came into effect this year, is also positive in terms of market diversification, but we must be wary of trade diversion effects where the Chinese market is lost to other member countries." He advised, "A detailed analysis is needed of the parts where China has granted much higher levels of concessions on goods to some ASEAN countries."

Finally, Vice President Woo stated, "In fields of the Fourth Industrial Revolution such as the digital economy, artificial intelligence (AI), and big data, the reality is that China is already ahead of us." He added, "Rather than being intoxicated by our advantages in semiconductors and displays, it is time to quickly promote workforce development for nurturing related fields."