How China is turning its back on South Korea
Posted On August 9, 2021
China is pushing back against the South Korean government’s call for a comprehensive plan to end its reliance on South Korean exports, arguing that its economy depends on the nation’s export-dependent industries.
Chinese Premier Li Keqiang told a Cabinet meeting on Tuesday that the South Koreans should not be too hard on the South because it is the economic backbone of the country, according to a South Korean news report.
“The South is the only country in the world with the capability to maintain the development of our industry in a way that doesn’t harm the country’s economy, said Li, who heads the National Development and Reform Commission.
But he added that the government must consider the economic and social impact of a complete South Korea-China trade deal.
China has threatened to boycott South Korean goods if it follows through with the South Korea proposal.
South Korea’s trade deficit with China was worth $9.3 billion last year, more than twice what it was in 2015.
Last month, the U.S. Treasury Department warned the South that Beijing could impose tariffs of up to 25 percent on South Koreans products if it did not sign a trade agreement with the country.
The South Korean foreign ministry on Tuesday said it was concerned by the potential of China’s actions to hurt South Korean industries.”
China has already said it is ready to trade with South Korea.”
In our opinion, the South should be a good partner to China in the bilateral trade and investment relationship, which is in the interests of the entire world.”
China has already said it is ready to trade with South Korea.
South Korea and China signed a memorandum of understanding in April 2015 to develop a South-South economic corridor.
Under the deal, China would buy nearly 40 percent of South Korea’s natural gas and energy imports and the two sides agreed to set up joint joint research and development centers.
A South Korean official said the memorandum also allowed China to develop its domestic energy sector, which could help boost the economy.
China’s Foreign Ministry did not immediately respond to a request for comment.
U.S.-South Korea relations have been tense since the end of the Cold War.
The two Koreas have been locked in a stalemate over the peninsula’s unification and the South’s demand for a share of the U,S.