To contain China, South Korea is siding with the United States, retribution is coming, and the Korean media have nothing to go to China
Since Yoon Suk-yeol came to power, South Korea has undergone a remarkable change in its foreign policy, moving away from maintaining a neutral stance and a clear bias towards the United States, willing to act as a loyal supporter of the United States. In particular, in terms of relations with China, although South Korea has not fully confronted China, it has revealed a sense of betrayal and betrayal.
However, South Korea must realize that pandering to the United States and the West at the expense of relations with China will inevitably lead to adverse consequences for China-South Korea economic exchanges. Today, South Korea is paying the price for that choice.
According to a report by South Korea, the latest data shows that as of November 2023, South Korea's ** balance of payments with China has turned into a deficit for the first time in the past 31 years, the second since the establishment of diplomatic relations between China and South Korea in 1992. According to the Korea Association, as of now, South Korea's deficit with China is as high as 18 billion US dollars, second only to the 22.4 billion US dollar deficit with Saudi Arabia.
This data reveals an obvious phenomenon, that is, South Korea cannot make a profit from the ** with China, but Chinese goods constitute a huge profit margin for South Korea, which is undoubtedly an unfavorable situation for South Korea.
It is important to note that exports have always been the backbone of South Korea's economy. Among China and South Korea, South Korea has maintained a surplus status and has been able to earn huge surpluses from China every year for many years. Especially between 2003 and 2018, South Korea's exports to China have maintained a strong position except for 2008. Today, however, that momentum is no longer there.
Why are South Korea's exports to China so sluggish?The reasons are as political as they are economic.
At the political level, South Korea is obedient to the United States in the field of chips and semiconductors, and actively participates in the ranks of containing China. Yoon Suk-yeol followed Biden's lead in imposing a ban on China's advanced semiconductor exports and joined the ranks of chip export restrictions to China. Given the lack of competitiveness in other commodities, South Korea's exports to China will naturally be seriously affected.
However, will Yoon Suk-yeol's approach really win the hearts of the United States?In fact, the U.S. chip export restrictions to China have caused U.S. chip companies to suffer serious losses, even if the U.S. ** provides subsidies, it is the U.S. companies that will benefit first, not South Korea. South Korean chip companies have suffered heavy losses and can only reap the consequences.
At the economic level, with China's development and technological progress, its competitiveness has increased significantly. In contrast, Korean companies have lost their original dominant position and are gradually falling behind the pace of the times.
For example, Korean cosmetics, which were once very popular, have lost out to Japan and France;South Korea's auto companies are in crisis and unable to maintain their competitiveness externally, especially in the field of electric vehicles, and South Korea has been slow to do so. South Korea no longer has any impressive exports. As South Korea said with emotion, "South Korea has nothing that can be sold to China." ”
After China's urea export policy was adjusted this year, the impact on South Korea was very huge, especially in the exchange between China and South Korea. Despite the lack of competitiveness in South Korea's exports to China, the influx of Chinese products into the South Korean market has had a major impact on the country. In this context, South Korea's ** Yoon Suk-yeol's approval rating fell directly by 4 percentage points, and the negative evaluation rate was as high as 60%.
The fundamental reason why South Korea's exports to China are in such a difficult situation lies in its own choices. In order to balance the pressure from North Korea, for the so-called *** Yoon Suk-yeol relies too much on the United States and adopts a hostile attitude towards China and Russia. However, this has not brought real security to South Korea, but has led to escalating tensions on the Korean Peninsula.
Recently, North Korea not only ignored stern warnings from the United States and South Korea, but also launched missiles with a range of 15,000 kilometers for two consecutive days, which became clear evidence.
Corresponding to the security situation in South Korea, the domestic political situation is not all peaceful. Yoon Suk-yeol's drastic cabinet reshuffle and the replacement of six heads of ministries at once is a clear example.
The only way to improve South Korea's current predicament is to improve its relationship with China while strengthening the competitiveness of its own products. If you still blindly follow the United States and confront China, you will only end up in a vicious circle!