"Need for Market Diversification as an Alternative to China"… Yoon Launches Full-Scale Sales Diplomacy in Europe

President Yoon Meets with Australian Prime Minister
Expected Move to Counter China... Signal of Decoupling

Economic Chief: "Boom Through China Is Over
Diversifying Markets Needed as Alternative
Europe Meets the Conditions"

NATO Secretary-General Meeting Postponed
Waited About 30 Minutes Before Leaving

President Yoon Suk-yeol, who is visiting Spain to attend the North Atlantic Treaty Organization (NATO) summit, is presiding over a pre-summit inspection meeting at a hotel in downtown Madrid on the 28th (local time). /

(Madrid, Spain = Asia Economy Reporter Baek Kyunghwan) President Yoon Suk-yeol, visiting Spain to attend the North Atlantic Treaty Organization (NATO) summit, has launched a full-scale "economic sales diplomacy" targeting the European stage. According to the presidential office, this is based on the judgment that Europe is the optimal partner to absorb South Korea's manufacturing capabilities and technological prowess amid China's economic slowdown. However, some observers see this summit attendance as the beginning of a decoupling process from China.

Choi Sang-mok, Senior Secretary for Economic Affairs to the President, said in a briefing on the 28th (local time) after a meeting between President Yoon and Australian Prime Minister Anthony Albanese, "The era of export boom through China that we have enjoyed for the past 20 years is coming to an end," emphasizing, "There is a need for market diversification as an alternative to China."

Regarding the economic significance of this NATO schedule, Senior Secretary Choi evaluated it as "the start of high-level sales diplomacy for new export-driven industries," adding, "As the importance of fostering new industries and economic security grows, expansion centered on the United States is necessary, and Europe is the place that satisfies these three aspects."

The distancing from China was also evident in the meeting with Prime Minister Albanese that day. President Yoon discussed agendas such as △ solidarity of value norms △ ASEAN centrality, which was evaluated as inevitably reflecting a new setting of relations with China. Australia is a key allied country in the U.S.'s "China containment" policy and was invited as an Asia-Pacific partner country along with South Korea, Japan, and New Zealand at this NATO summit. A presidential office official previewed, "Discussions will be held on how South Korea and Australia will set their relations with China, how to avoid hostile relations, and how to build a future-oriented cooperative relationship based on interests with major countries in the region, including China."

President Yoon's remaining scheduled summit meetings with major NATO countries are also expected to be moves to escape China's containment. To strengthen supply chains, President Yoon will discuss semiconductors with the Netherlands and the United Kingdom, batteries with the Czech Republic and Poland, and critical minerals with Canada. A presidential office official explained, "Because the benefits we have reflexively gained as a result of China's expansion of its domestic market are decreasing, we need to strengthen cooperation with Europe for our survival."

As the distancing from China accelerates, South Korea's burden in setting relations with China is also expected to increase. China has reacted sensitively to the holding of this NATO summit and has raised the level of criticism against South Korea. The Global Times, the Chinese Communist Party's official newspaper, pressured, saying, "If the Yoon Suk-yeol administration increasingly loses diplomatic independence by relying on the U.S., relations with China will become more complicated."

However, the South Korean government plans to uphold diplomatic principles even if China carries out economic retaliation following this NATO tour. Prime Minister Han Duck-soo said at a press conference held at the Sejong official residence to commemorate his one-month inauguration the day before, regarding the possibility of Chinese retaliation, "There is no such possibility," but added, "If China is dissatisfied with pursuing values respected by the world and principles to be followed and intends to take economically disadvantageous actions, we must say that it is not the right thing to do," and warned, "We must not break more important principles to recover from that (disadvantage)."

Professor Nam Sung-wook of Korea University’s Department of Unification and Diplomacy said regarding relations with China, "Pressure will begin depending on South Korea's follow-up measures after the NATO tour," adding, "Since this is a growing pain we must endure for what we have decided, we need to devise a strategy to minimize losses."

The originally scheduled meeting between President Yoon and NATO Secretary General Jens Stoltenberg was postponed that day. The schedule was disrupted due to issues related to NATO membership of Finland and others, and it was reported that President Yoon waited for about 30 minutes at the meeting place before leaving.

Afterward, President Yoon attended a welcome gala dinner hosted by King Felipe VI of Spain along with his wife, First Lady Kim Keon-hee. While taking group photos with leaders from various countries, President Yoon briefly shook hands with U.S. President Joe Biden.

On the third day of his visit to Madrid, Spain, on the 29th, President Yoon will attend trilateral summit meetings among South Korea, the U.S., and Japan, as well as NATO summit events.

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