China Returns as South Korea's Largest Export Market, Surpassing the US
"Increased US Pressure Could Harm Korean Companies"
As China has overtaken the United States to reclaim its position as South Korea's largest export destination, Chinese state media claimed this demonstrates "the limits of the U.S.'s export controls against China." They also warned that if the U.S. intensifies its pressure on China, related South Korean companies will suffer significant damage.
On the 4th, China's state-run Global Times (GT) reported, citing experts, that "with semiconductor shipments increasing, China has once again become South Korea's largest trading partner," adding that "this shows the limits of the U.S.'s ruthless semiconductor export ban against China." GT further explained, "The U.S. is trying to pressure its allies, including South Korea, to expand semiconductor export restrictions, but semiconductor trade between China and third countries will continue."
According to the Ministry of Trade, Industry and Energy and the Korea International Trade Association, South Korea's exports to China in July rose 14.9% year-on-year to $11.4 billion (approximately 15.5222 trillion KRW), marking the highest level in 21 months since October 2022 ($12.2 billion). From January to July, cumulative exports to China reached $74.8 billion, surpassing the U.S. ($74.5 billion), making China once again South Korea's largest export market.
GT noted, "It is noteworthy that the increase in South Korea's exports to China was driven by strong demand in the semiconductor sector," explaining, "During the first 25 days of July, semiconductor exports to China surged 25.9% year-on-year, outpacing the overall 10.4% growth rate of South Korea's total exports to China during the same period."
They continued, "The U.S. is persistently pressuring its allies to halt exports of semiconductors and semiconductor manufacturing equipment to China in a malicious attempt to suppress China's technological advancement," but "experts say that the U.S.'s arbitrary crackdowns have failed to stop trade or the development of China's semiconductor industry and will continue to fail."
Communications expert Ma Zhihua told GT, "The U.S. has employed every possible means?from its own export bans to coercion of allies?to crack down on China," but criticized, "All these moves have failed to achieve their intended goals."
Earlier, major foreign media reported that while the U.S. government plans to tighten semiconductor equipment export controls to China next month, South Korea, Japan, and the Netherlands are classified as exceptions, limiting the impact.
Regarding this, Ma Zhihua stated, "This shows the limits the U.S. faces in restricting exports," but warned, "If export controls are further expanded, only companies in the U.S. and its allies will suffer." He added, "The U.S.'s export restrictions on China have damaged the semiconductor market and placed enormous pressure on companies," noting, "Because this involves huge risks and high levels of investment, the U.S. itself is also being hit."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
