SOUTH KOREA PIVOTS TO CHINA: TRADE DEALS ESTABLISHED

Written by Michael Thervil

SOUTH KOREA PIVOTS TO CHINA: TRADE DEALS ESTABLISHED | PHOTOGRAPHER UNKNOWN

[South Korea China] Yesterday South Korean President Lee Jae Myung held high level talks with Chinese President Xi Jinping as he took a four-day tour throughout China. Beyond spectacle, the reason for the meeting was to seek ways to reignite and strengthen geopolitical ties with China. Korean President Lee Jae Myung stated that he was actively seeking to open “a new chapter in the development of Korea-China relations” during “changing times” with China. This comes as the geopolitical relationship between South Korea and America declines due to Japan-American relations and how that relationship could increase the likelihood of chaos in the region. President Lee Jae Myung pushed the idea of both China and South Korea jointly collaborating to “promote peace” and lay the groundwork for “prosperity and growth”.

Both Presidents Lee Jae Myung and President Xi Jinping sought to find a solution to decrease the level of tensions between South and North Korea. The seeking of a possible solution by the two nations occurred just before North Korea recently executed a test of its newest hyper-sonic missile which was estimated to travel five times the speed of sound. During the previous meeting which occurred on Monday both Presidents also discussed how to strengthen bilateral ties between the two nations in terms of commercial and trade which they project should increase above the 2024 level of $273 billion. Companies that stand to gain the most from the fostering of this new commercial trade deal would be Hyundai, Shinsegae, LG, Samsung, Lenovo, and Alibaba.

Other key sectors in which the two Presidents reached a consensus on were the signing of 15 new deals in the sectors of biotech, beauty, transportation, agriculture, intellectual property, consumer goods, technology, cultural content and entertainment. President Lee Jae Myung stated to the Press that he is seeking “full restoration of China ties in 2026”. Geopolitical analysts are taking the position that South Korea is currently looking for ways to diversify its portfolio in anticipation of future deterioration of their relationship with the Americans. What President Lee Jae Myung is calling a “new phase” in South Korean-China relations appears to be more than that for many who are staunch observers of the geopolitical chessboard.

The reason for this is because both Presidents cooperatively are pushing the “importance of resuming dialogue with North Korea and agreed to continue exploring creative ways to reduce tensions and build peace on the Korean Peninsula”. This signals that both nations are looking to strengthen their core interests while expanding those interests into the foreseeable future.