During the May South Korea-US honeymoon... China conducted a focused investigation on South Korea's supply chain weaknesses

Investigation of Over 200 Items Highly Dependent on China... Interpretation of "Considering Use for Economic Retaliation"

[Asia Economy Sejong=Reporter Kwon Haeyoung] It has been understood that China has conducted a focused investigation into South Korea's dependence on supply chains related to China. This move comes amid the United States pushing for a global supply chain restructuring to establish an anti-China encirclement, and South Korea formalizing its participation in the Indo-Pacific Economic Framework (IPEF) to strengthen close ties between the two countries. There are concerns that China may impose economic retaliation measures such as export suspensions targeting the 'weak links' in South Korea's supply chain, making it urgent to prepare countermeasures such as supply chain diversification.

According to the government on the 5th, the Chinese government recently investigated South Korea's supply chain status through the Chinese Embassy in Korea. Multiple government officials stated, "The Chinese government conducted a comprehensive investigation of South Korea's supply chain status," adding, "They focused particularly on items with high dependence on China, analyzing the supply chain status intensively, covering about 200 items." ▶Related article on page 5

It is reported that China began investigating South Korea's supply chain status around May. This period coincided with the rapid strengthening of South Korea-U.S. relations, including the holding of the South Korea-U.S. summit and South Korea's formalization of participation in IPEF, shortly after the inauguration of the Yoon Suk-yeol administration. At that time, Wang Yi, China's Foreign Minister, clearly expressed opposition to the U.S.-led IPEF, stating to the South Korean government, "We oppose the negative trend of decoupling." Unlike previous administrations that maintained strategic ambiguity between the U.S. and China, this investigation into South Korea's dependence on China’s supply chain during this period is interpreted as a signal that China could leverage South Korea's high dependence on its supply chain to impose economic retaliation measures such as export restrictions against the South Korean government, which is restoring South Korea-U.S. relations and strengthening its alliance with the U.S.

Professor Jeong In-gyo of Inha University's Department of International Trade said, "This appears to be a basic data investigation by China in response to the recent full-scale moves by the U.S. and its allies to check China," adding, "The close South Korea-U.S. relationship and South Korea's participation in IPEF are inevitable steps, and although the possibility of China immediately imposing export restrictions or other retaliatory measures is low, some recent officials unnecessarily provoke China, so restraint is needed."

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