Sino-Sino American trade war is unlikely to end soon

The Korea International Trade Association (KITA) said in its report that South Korea's trade strategies should be based on the assumption that the ongoing trade war between the United States and China is more constant than variable.

“The war is likely to last a long time, even in the case of some agreements, because the fact that the Chinese economy is led by the Communist Party will not change in the near future,” he said, adding: “The US is likely to focus on curbing China's attempts to gain access to the US market through bypass routes or through direct investment in third countries, which means that South Korea needs to correct the US view that South Korea is one of China's bypass export routes. ”

The association also said that Chinese metal products and investment could drain into South Korea if the United States continued to inspect China's steel industry. “In this case, the United States will view South Korea as a bypass export route for China, and South Korean companies and job seekers will be negatively affected,” he explained. Tsingshan Steel Group recently sent a letter of intent to Busan to build a cold rolled stainless steel sheet plant in cooperation with a local company. South Korean steelmakers are opposed to the Chinese group's plan for a reason stated by the association.

KITA also pointed to the need to modernize the trade models of Korea and China in line with China's industrial development. “Although South Korea and Japan's intermediate goods exports to China totaled USD 128.9 billion and USD 85.1 billion last year, these figures will be USD 73.3 billion versus USD 73.9 billion after semiconductor exclusion, which means that China is importing more and more intermediate goods from China. Japan instead of South Korea with a single exception for semiconductors, ”the association said, continuing:“ In this regard, South Korea should focus on exporting high-quality intermediate goods, which is expected to show growing demand in China, and on exports to various non-Chinese markets. such as Vietnam, India and Indonesia. "

Meanwhile, KITA Chairman Kim Young-joo held a press conference that day and said that regarding Japan's export restrictions, South Korea and Japan have made significant joint contributions to the global manufacturing sector for decades, and their constructive economic relations are in the process of developing. ... under the threat of political and diplomatic disputes. “One of the possible solutions is closer cooperation