Huawei or the US... Korea Caught Again Between the US and China

Huawei Leads Not Only in Smartphones but Also in Wearables
Anti-Huawei Front Expands to TikTok
South Korea Faces Choice Between US and China

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] Huawei is performing well by securing the global number one position in the wearable market following smartphones, but the 'technology hegemony war' is intensifying as U.S. sanctions and boycotts by various countries spread. As the U.S.-China conflict expands into a full-scale economic war, the South Korean government's dilemma of being forced to choose between the two countries simultaneously is growing.

According to market research firm Strategy Analytics (SA) on the 29th, Huawei ranked first in the global wearable market excluding wireless earphones in the second quarter of this year with a 21% market share. The smartphone business is similar. Huawei surpassed Samsung Electronics (19.1%), which had maintained the number one spot, for the first time with a global smartphone shipment market share of 19.7%.

The problem is that Huawei's strong performance is limited to the domestic market in China, which poses limitations, and the anti-Huawei coalition originating from the U.S. is further expanding.

India, the world's second-largest telecommunications market, is reportedly deciding to phase out Huawei equipment. On the 17th of this month, the U.S. government raised the level of sanctions by requiring U.S. approval to supply semiconductors produced using U.S. technology or equipment to Huawei, and it continues to raise security concerns about TikTok.

The 'Huawei encirclement' is expected to affect South Korean companies as well. The U.S. has threatened that companies cooperating with Huawei may face disadvantages. However, diplomatic relations and trade dependence with China cannot be ignored. Amid increasing U.S. sanctions, China has continuously expressed concerns through major diplomatic channels about South Korea's participation in supply chain de-Chinaization.

According to market research firm Gartner, Huawei's semiconductor spending ranked third last year at $20.8 billion, following Apple and Samsung Electronics. If Huawei's semiconductor supply chain is cut off due to U.S. sanctions, South Korean companies such as SK Hynix will inevitably be affected.

The dilemma of South Korean companies and diplomatic authorities caught in the 'sandwich' between the U.S. and China is bound to deepen. An ICT industry official said, "As the U.S.-China conflict intensifies and the Huawei encirclement tightens, both G2 countries are demanding a stronger stance from the South Korean government rather than a low-key response," adding, "Since the hegemony battle that started with Huawei is spreading throughout the IT industry, a more strategic response is necessary."

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