Published 17 Apr.2023 10:21(KST)
Recently, Korean businesspeople have been appearing more frequently in Chinese media. On the 16th, China Central Television (CCTV)'s evening main news program Xinwen Lianbo reported on the trade fair 'China Import and Export Fair (Canton Fair)' and featured an interview with a representative from a Korean portable gas burner manufacturer. This media outlet also featured a Hyundai Motor Company hydrogen fuel cell system manager in a special report on the business environment in Guangdong on the 9th, emphasizing the local business environment and positive economic outlook.
The state-run Xinhua News Agency conducted a written interview earlier this month with Yoon Doseon, CEO of CJ China. CEO Yoon stated, "China is the world's second-largest economy with resilience and potential," and added, "CJ is optimistic about the Chinese market." He also stressed that the economies and trade of the two countries are deeply connected and that CJ is continuously expanding its production facilities in China.
Typically, Chinese state media meticulously plan the order of reports, the people featured, and interviewees. The recent increase in coverage of Korean businesspeople is interpreted as a deliberate signal of China's willingness for economic cooperation with Korea. The recent visit by Chinese President Xi Jinping to the LG Display production base in Guangzhou, Guangdong Province, can also be understood in this context.
However, Korean companies still view China, which daily emphasizes openness and foreign investment with open arms, with apprehension. This is because the business environment can change frequently depending on political situations or bilateral relations, and there is no guarantee that unprecedented regulations and inspections will not suddenly emerge. The 'incident' in which Lotte, a major conglomerate that provided the site for the Terminal High Altitude Area Defense (THAAD) system on the Korean Peninsula and invested over 10 trillion won in China over decades, ultimately had to withdraw from China is not a distant memory.
A diplomatic source recently met with said, "Every time we meet Chinese government officials, they uniformly emphasize investment in each region," but added, "However, our companies cannot shake off their anxiety about the business environment." The source further explained, "Given the severely deteriorated financial situation of local governments after COVID-19, can companies really trust and invest?" China's change in attitude, tearing down the three-year-long 'Great Firewall' of pandemic controls and actively attracting foreign investment, could offer great opportunities for Korean companies. However, if genuine economic cooperation and private investment are desired, resolving the chronic issues of irrational administration and uncertainty must come first.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.