The Bank of Korea: "Even if Biden Wins in the US, Pressure on China... South Korea Faces Increasing Pressure to Choose Between the Two"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] It is expected that if Joe Biden, the Democratic candidate, wins the U.S. presidential election, trade uncertainties will decrease and the U.S. dollar will weaken. However, conflicts between the U.S. and China are likely to continue, meaning South Korea will still have to walk a tightrope amid the U.S.-China trade war.

On the 25th, the Bank of Korea evaluated in its 'Overseas Economic Focus' report that "the U.S.-China conflict is likely to intensify and prolong regardless of the election outcome due to the nature of the global hegemony competition."

Although there are differences between President Donald Trump and Democratic candidate Joe Biden in various fields such as international politics and security, global trade order, and environmental and energy issues, experts explain that there will be no significant difference in the main aspects of the U.S.-China trade conflict.

The report cited a PEW survey, stating that the proportion of negative responses toward China within the U.S. is steadily increasing. Among Democratic supporters, the negative response rate rose from about 62% earlier this year to 68% in June-July, while among Republican supporters, it surged from 72% to 83% during the same period.

As China shows rapid growth and expands its global influence, it is said that the U.S. will continue to check China due to concerns over weakening influence. Both the Republican and Democratic parties have formed a bipartisan consensus on being anti-China.

However, the report suggested that Biden's approach to pressuring China is more likely to involve multifaceted trade pressures linked to environmental, antitrust, anti-corruption, human rights, labor, and intellectual property issues rather than imposing high tariffs, as well as pressure through multilateral negotiations.

The Bank of Korea stated, "Both candidates are strengthening checks on China, raising concerns that South Korea will face intensified pressure to choose sides between the U.S. and China," and predicted, "Regardless of which candidate wins, pressure to reduce China's share in supply chains will increase."

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