How U.S.-China trade war could affect S. Korean companies

미국의 대중국 규제 강화로 넓히는 무역전쟁… 한국 기업에 미치는 영향은?

The trade dispute between the United States and China rumbles on, with Beijing being hit with a wave of new sanctions and Washington facing possible retaliation.
Eyes are on how this could affect the global market, including South Korean firms.
Our trade correspondent Moon Hye-ryeon tells us more.

New steep tariffs announced by the Biden administration last week were met with mixed responses from the South Korean market, with some sectors such as the chip industry expecting to not be as affected as others.
Trade tariffs on EVs from China are being quadrupled from 25 percent to 100 percent, and chips face a doubling of the duties already in place to 50 percent.
"We're not going to let China flood our market, making it impossible for American automobile, auto manufacturers to compete fairly whilst implementing a 25% tariff on electric vehicle batteries from China and a 25% tariff on critical minerals that make those batteries.”

Regulations for Chinese-made connected vehicles are also expected to be announced this fall, regulating vehicles such as "smart cars" with autonomous driving and vehicles with wireless navigation software over concerns of Beijing collecting personal data through connected vehicles.
With higher tariffs on Chinese-produced vehicles, domestic electric vehicle companies could take advantage of this gap in the American market.
South Korea’s exports in the first quarter of the year have already reflected this trend, with data from the Bank of Korea showing that the value of outbound shipments to the U.S. overtook those to China for the first time in 21 years.
But one expert says that this is only temporary, as Washington seeks domestic production of goods.

“Until the construction of those factories are complete Korean firms may be able to export more to the United States but once those factories come online Korean companies may lose their advantage in the American market.”

Another factor that needs to be taken into account is the possibility of Chinese companies diverting exports to markets in Europe or other Asian countries.
This could lead to South Korean firms facing much tougher competition in these markets, especially for the steel industry – for companies such as POSCO and Hyundai Steel – that will have to compete with the much cheaper Chinese steel.
In response, the South Korean government submitted a statement at the end of last month to the U.S. Department of Commerce --expressing its concerns regarding the uncertainty around how the country's firms could be affected.
The trade ministry also set up meetings with the automobile, battery, and steel industries last week, pledging its support for diversifying supply chains and raising the country’s competitiveness in the global market.
Moon Hye-ryeon, Arirang News.

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2024-05-23, 21:00 (KST)

Видео How U.S.-China trade war could affect S. Korean companies канала Arirang News