In the midst of global tensions related to chip technology and supplies, China and South Korea have come to an agreement to strengthen dialogue and cooperation on the semiconductor supply chain. On Friday, China's Commerce Minister Wang Wentao met with South Korea's Trade Minister Ahn Duk-geun to discuss deepening bilateral trade and investment cooperation. The meeting took place during the 2023 APEC Trade Ministers meeting. The two officials exchanged views on maintaining the stability of the industrial supply chain and strengthening cooperation in bilateral, regional, and multilateral fields.
The US has taken steps to limit Chinese access to crucial semiconductor know-how, and the tech sector has become an essential battleground between the two largest economies. Washington has blacklisted Chinese tech firms, cut off the flow of sophisticated processors, and banned its citizens from providing any help to the Chinese chip industry. In response, China has been looking for other sources of semiconductors, and South Korea has become a crucial provider of the technology.
During the meeting, Ahn also requested support from Wang in creating an environment that is predictable for South Korean companies operating in China. The agreement between the two countries comes in a time when the Covid-19 pandemic has caused a disruption in international trade and supply chains. The collaboration between the countries can play a significant role in ensuring stability in the semiconductor supply chain and promoting sustainable economic growth for both countries.