"Korean Companies Must Find Response Strategies to US-China 'Strategic Competition'"

Professor Lee Hee-ok's Trade Association Lecture... "Strategic Entry Considering G2's Competitive and Cooperative Dynamics Needed"

[Asia Economy Reporter Lee Hye-young] Amid concerns over the worsening business environment for companies due to the power rivalry between the United States and China, it has been pointed out that Korean companies need to seek strategies to respond to this situation.

Professor Lee Hee-ok of the Department of Political Science and International Relations at Sungkyunkwan University delivered a lecture titled "US-China Strategic Competition and China's Great Transformation: Implications for Our Companies" at the KITA CEO Online Breakfast Meeting hosted by the Korea International Trade Association on the 25th, stating this view.

Professor Lee said, "The current world order is in a period of great turmoil, experiencing setbacks in democracy and worsening inequality. This turmoil is quite structural, so it will persist for a long time even after the COVID-19 pandemic ends," forecasting prolonged instability.

He analyzed, "Since the inauguration of the Biden administration, the US has aimed to secure new global leadership, but it also modifies the international order it created when it conflicts with its national interests. Amid the US offensive, China is activating its domestic economy to combine manufacturing with future industries, while externally showing cautiousness by not responding preemptively as it recognizes the limits of its national power."

He continued, "Although the current confrontation between the US and China is highlighted, it is more likely to take the form of a long-term 'strategic competition' that sometimes competes and sometimes cooperates, rather than a complete decoupling like during the Cold War. Next year, with the US midterm elections and China's 20th National Congress scheduled, it is expected to be difficult to find a new breakthrough in bilateral relations," he diagnosed.

Regarding the impact on the domestic trade industry, he said, "Considering that China is implementing antitrust and corporate activity regulations, causing a contraction in the business environment, and is also enforcing policies to resolve widespread social disparities, companies must establish entry strategies with these factors fully in mind." He advised, "While sectors such as agriculture, manufacturing-based new technologies, and aerospace, which the Chinese government is focusing on, have bright long-term prospects for entry, fields like private education, healthcare, and entertainment are subject to intensive Chinese regulations and thus require a cautious approach."

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