POSCO Research Institute Establishes POSRI China to Closely Support POSCO's China Strategy

[Asia Economy Reporter Hwang Yoon-joo] POSCO Research Institute plans to strengthen support for establishing POSCO Group's China strategy by setting up POSRI China. Although POSRI China completed its registration in March 2020, it has only recently begun normal operations due to the impact of the COVID-19 pandemic.

With the spread of COVID-19, protectionist movements have intensified worldwide, and the US-China conflict has escalated, placing China at the center of changing global dynamics. Recently, there has also been a movement in China emphasizing a self-reliant economic model focused on domestic consumption rather than exports. This has deepened concerns in South Korea, which heavily depends on exports to China. This is why the importance of a China strategy is increasingly emphasized.

The internal situation in China is also complex. China, which has pursued quantitative economic growth until now, has begun to shift its focus toward qualitative growth aimed at improving quality of life and efficiency through eco-friendly initiatives and platforms. The Chinese steel industry is also focusing on structural advancement in line with this trend, emphasizing high-end products, eco-friendliness, smart technologies, and globalization.

At the Two Sessions (Lianghui?the National People's Congress and the Chinese People's Political Consultative Conference) held last May, representatives of the Chinese steel industry unanimously stated that the steel industry must pursue "high-quality growth." During such times, the importance of establishing strategies based on local context, including changes in Chinese policies and market trends, cannot be overstated.

The establishment of POSRI China is interpreted as a proactive measure to respond to uncertainties arising from changes in business conditions in China. POSRI China plans to closely support POSCO's China strategy by strengthening networking with Chinese government agencies, steel-related academia, and industry. Managing local business risks is also expected to be a key role.

There is also expected to be a strong focus on closely supporting the discovery of business opportunities in new growth sectors beyond steel. China continues to grow in new technologies such as electric vehicles, robotics, 5G, and eco-friendly technologies, as well as new business areas like the sharing economy and smart manufacturing. The importance of discovering new business opportunities in future China strategies is expected to increase gradually.

Shim Sang-hyung, Research Fellow at POSRI China, said, "We will vigorously contemplate strategies for the future of our economy and companies in the fiercely competitive and rapidly transforming environment of numerous Chinese companies."

This content was produced with the assistance of AI translation services.