[Viewpoint] Being Shocked by the 'Huawei Shock' Is the Bigger Problem

There is no need to understand all the difficult technical terms to get to the core of the issue. What must be addressed at this point is under what hypothesis our government and companies have been preparing for the current situation. If South Korea, like the U.S. government, is flustered and shocked by the so-called ‘Huawei Shock,’ it is evidence that things have not been going properly.

Our publication has been tracking the outlines and signs of what is happening inside China following the U.S. advanced technology sanctions. While we could not verify everything in detail, one clear fact is that China is not just passively enduring the situation. Whether through smuggling or circumvention methods, the Chinese government and companies are fiercely moving to survive, and confirming such circumstances was not difficult. Therefore, interpreting the news of Huawei’s new smartphone equipped with advanced semiconductors as meaning ‘the U.S.-China tech war may not end easily with a U.S. victory’ sounds quite complacent.

Watching the U.S. escalate sanctions, two contrasting hypotheses came to mind regarding ‘technology competition.’ One hopeful outlook is that the technological gap between China and South Korea will widen, which would act as an opportunity for our companies. Conversely, there was concern that export controls focused on blockade rather than dependency would incentivize China to accelerate its era of technological self-reliance, ultimately causing a backlash.

If the U.S.-China conflict is not just a foreign dispute to watch but a matter directly linked to our survival, it is hard to dispute that the hypothesis we must assume and prepare for is the latter. Survival issues should be approached with an excessively safe and conservative solution.

Focusing on proving whether the Mate60 Pro indeed contains a 7-nanometer process processor supporting 5G communication, while hoping it is not true, can therefore be a shortsighted attitude. Even if the final analysis concludes ‘it is not,’ little changes. No one would foolishly consider the few years of breathing room gained by South Korea or Taiwan as evidence that sanctions against China have been effective and that China’s semiconductor ambitions will ultimately fail.

Regardless of how the new phase of the U.S.-China hegemony war unfolds, the direction we must maintain and pursue is clear. Supporting our companies to accelerate technological innovation while meticulously crafting diplomatic strategies remains crucial regardless of environmental changes. This week, a U.S. Department of Commerce official will visit South Korea to discuss whether to extend the exemption on semiconductor equipment export controls to China. This is an area where our diplomatic efforts must be concentrated in the short term.

Recently, the Chinese Ambassador to South Korea caused a stir by saying, “South Korea will regret betting on the U.S.” Although a very rude remark, there is a lesson to be learned from our perspective. Betting is done by assessing the situation. Is it our inherent fate to find the optimal place to bet by watching whether it is the U.S. or China? If there is something we should be surprised about, it is not the Huawei Shock but our own reaction, panicking as if the situation suddenly changed.

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