South Korea has once again stopped key raw materials and asked the mainland to give an explanation!

Mondo Finance Updated on 2024-01-28

Recently, the South Korean semiconductor industry is once again facing the suspension of key raw materials, which makes them very anxious. This time, it is the export process of AdBlue solution (diesel exhaust treatment fluid), which is essential for diesel vehicles to meet environmental emission standards and is indispensable for South Korea's fleet of up to 4 million diesel vehicles. Previously, South Korea had experienced a "urea shortage" and suffered huge losses. In order to avoid repeating the same mistakes again, South Korea has asked the mainland to give an explanation and resume using urea for their cars as soon as possible**. However, the mainland has not given a positive response for the time being. South Korea** believes that South Korea's statement may have a limited effect. According to analysis, the suspension is not because of regulatory restrictions on exports, but because of the domestic situation. The growth of domestic demand needs to be met first, and then we need to consider exporting to other countries, such as South Korea. As a result, South Korea may have misassessed the way to solve the problem. At the same time, Chinese officials also said that they would solve the problem from the regulatory level and stabilize the global market. Although South Korea may still face a "urea shortage" in the short term, this situation will not last long, giving South Korea some reassurance.

This incident fully shows that the current changes in South Korea's position in semiconductors, automobiles and other fields are related to China's mastery of most of the first chain. For South Korea, they are in an awkward role. Whether in the field of semiconductors or automobiles, the Chinese market occupies an important position and controls the key raw materials. At the same time, if they want to seek high-end chip-making equipment, they still need to rely on the United States. Whichever side you choose, South Korea's semiconductor industry will not be in a good position. However, it is reassuring to note that new signs of strengthening semiconductor cooperation between South Korea and the Netherlands have emerged. This may mean that they do not want to continue to be involved in this conflict. In this way, they can weaken the monopoly of the US chip technology alliance to a certain extent, and at the same time, we do not need to worry about South Korean companies taking action to cut off supply. In short, only by mastering our own strengths can we have leverage in negotiations.

Everyone has their own opinion on this issue. For South Korea, they need to find more alternative channels and reduce their dependence on the Chinese market. At the same time, they should also increase their independent R&D efforts to reduce their dependence on key raw materials in the long run. For China, it is very important to maintain the stability of its own ** chain, so as to ensure that its own interests are not harmed. In addition, we should strengthen cooperation with other countries and avoid relying too much on the market and technology of one country. Only on the basis of multi-party cooperation can we better deal with similar first-chain crises.

To sum up, South Korea's suspension of key raw materials has once again aroused the attention of the market. This time, it is the export process of AdBlue solution that is affected, which is a major challenge for South Korea, a country with a large market for diesel vehicles. South Korea demanded an explanation from the mainland and a resumption as soon as possible**. However, the mainland side did not give a positive response. South Korea's statement may have a limited impact under the current chain pattern. According to the analysis, the suspension is due to the consideration of the domestic situation, rather than direct regulatory restrictions. In this regard, South Korea may need to find alternative channels, reduce its dependence on the Chinese market, and increase its independent research and development efforts. For China, it is very important to maintain the stability of the ** chain, and at the same time, it is also necessary to strengthen cooperation with other countries. Only on the basis of multi-party cooperation can we better deal with similar first-chain crises.

Related Pages