South Korea's long-awaited policy of "distancing China" has finally brought terrible consequences, and the situation of comprehensive backlash is affecting South Korea's national fortunes, and the dilemma faced by the semiconductor industry is only the tip of the iceberg of this backlash.
Recently, data released by the Korea ** Association and the Ministry of Trade, Industry and Energy show that from January to November this year, South Korea's total exports to China reached 114 billion US dollars, while the total imports from China were 132 billion US dollars, forming a deficit of up to 18 billion US dollars.
This data is eye-catching, because this is the first time in 30 years that South Korea and China have had such an unfavorable situation, marking a major change in the status of South Korea and China.
The reason for this is that China's rapid progress in the field of science and technology has led to fundamental changes in the structure of South Korea's exports to China. In the past, South Korea mainly exported high value-added products such as intermediate materials, semiconductors, and displays to China, thus making huge profits in the world. However, China's breakthroughs in science and technology in recent years have increased its self-sufficiency in raw materials, making Korean products less popular.
Taking petrochemical raw materials as an example, China's self-sufficiency rate was only 60% in 2019, but now China has achieved basic self-sufficiency and no longer needs to import South Korean-related petrochemicals.
Second, the competition between China and the United States has also had a profound impact on South Korea's exports and the overall economy. Taking South Korea's pillar industry semiconductors as an example, South Korea's semiconductor industry has been severely hit as South Korea has followed the United States to increase its efforts to contain China.
Considering that the Chinese market accounts for nearly 60% of South Korea's semiconductor exports, the Chinese market has always been crucial for South Korea. However, in the first 10 months of this year, South Korea's exports of semiconductor products to China totaled just under $700 million, a staggering 39 percent decrease from the same period last year.
Such data is undoubtedly a heavy blow to South Korea. Semiconductors, which are the leading products of South Korea's exports, will inevitably affect the overall export situation.
Eventually, South Korea actively participated in the U.S. approach to China"Chip wars"Behind it, it mainly stems from Yoon Suk-yeol's ** policy. This stance on China has dealt a serious blow to Sino-ROK relations, which in turn has put economic and trade cooperation in an embarrassing situation. Chinese consumers are boycotting Korean products in favor of more cost-effective domestic brands.
At present, even Korean cosmetics, which once swept the Chinese market, have lost their popularity and continue to decline in market share. This passive situation may be further expanded in the future for Korean products, and the semiconductor issue currently being discussed is only a microcosm of this phenomenon.
Obviously, under the overall guidance of the first Shuhua, South Korea is facing a multifaceted backlash, which will have a serious impact on South Korea's future development prospects. The aforementioned U.S. vs. China"Chip wars"South Korea's semiconductor industry has already dealt a blow to the country, and in order to cope with this dilemma, South Korea has had to form an alliance with the Netherlands, a semiconductor manufacturing powerhouse.
However, even Han He"Semiconductor Alliance"It will also be difficult to fundamentally change the predicament facing South Korea. On the one hand, the in-depth cooperation between South Korea and the Netherlands has not been able to change the U.S. policy of restricting Chinese semiconductors. This restriction has caused a serious impact on the factories of South Korean semiconductor giants in China, and the US control of advanced semiconductor production equipment has made it impossible for South Korean factories in China to upgrade smoothly, which will weaken the competitiveness of Korean semiconductor companies in the long term.
On the other hand, there is uncertainty about whether the cooperation between South Korea and the Netherlands can be sustained, especially given the current growth of the Dutch right-wing forces, and whether it can continue its commitment to South Korea in the future.
More importantly, it seems that the United States' restrictions on Chinese chips have instead prompted China to achieve independence in technology fields such as semiconductors, which is undoubtedly worse for South Korea. Overall, South Korea's semiconductor industry and many other fields are facing a sunset crisis, which is the serious consequence of blindly following the United States. 100 help plan