China Tech Invasion Crisis or Opportunity

● China’s Tech Blitz – Threat to Korean Industries?

Latest Economic Outlook Analysis: China Issues and Korea’s Response Strategies

1. Development of China’s Old and New Economies

China’s old economy is stagnant, focusing on traditional industries, but the new economy is making remarkable progress in high-tech areas such as 6G and semiconductors.
China’s technological prowess is noticeably highlighted at global events like MWC and CES.
China surpassed the United States in 5G and is now aiming to commercialize 6G, rapidly catching up in advanced semiconductor technology.
Recent reports that Huawei’s technological advancements and basic capabilities have surpassed Korea’s prove this.

2. Intensifying Competition in Semiconductor and High-Tech Sectors

China’s semiconductor sector is outpacing Korean companies from basic capabilities to back-end processes.
The development of EUV and DUV lithography equipment is becoming visible, and China is building its own production system despite U.S. sanctions.
China’s rapid technological pursuit in key technology areas such as 6G, AI, and renewable energy poses a significant threat to Korean industries.
Along with this, the widening gap in semiconductor design and manufacturing sectors poses a serious challenge.

3. Impact on the Korean Economy and Response Strategies

Korea faces the risk of weakened international trade competitiveness due to China’s technological pursuit, overproduction, and subsidy issues.
The supply chain crisis in traditional manufacturing industries such as automobiles and batteries is also severely impacting domestic SMEs.
In the midst of the U.S.-China trade conflict, it is necessary to seize export opportunities to the U.S. and diversify into domestic and service industries, as well as non-manufacturing sectors such as culture and healthcare.
Domestic companies and the government must properly recognize the competitive structure with China and develop a strategy to expand high-value-added services by utilizing existing manufacturing strengths.

4. Policy Proposals and Future Outlook

From a policy perspective, it is necessary to expand foreign direct investment and diversify the global supply chain.
In particular, it is necessary to maximize national interests through a balanced diplomatic and economic strategy between the U.S. and China.
Korean companies must lay the foundation to surpass China’s competitiveness in advanced technologies such as 6G and semiconductors by strengthening technology investment and research and development.
In conclusion, China’s rapid development can be both a threat and an opportunity, so it is urgent to prepare strategic response measures.

5. Key Summary

China is rapidly developing technological capabilities that surpass Korea in both old and new economies.
In particular, it is competing with the United States in high-tech fields such as 6G, semiconductors, and AI, aiming for global market leadership.
The Korean economy must overcome the limitations of a manufacturing-oriented structure and transform the crisis into an opportunity by diversifying into non-manufacturing sectors such as service and cultural industries.
In the midst of the U.S.-China trade conflict, overproduction, and subsidy issues, it is urgent to prepare policies to protect domestic SMEs and supply chains.
Through the reorganization of international trade and investment strategies, Korea must draw an economic outlook that aligns with its national interests.

This is a summary of the latest global economic trends, including the keywords of economic outlook, semiconductors, 6G, the Chinese economy, and international trade.
China is rapidly overtaking Korea on the two axes of the old and new economies, showing remarkable achievements in 6G and advanced semiconductor fields.
Accordingly, Korea needs a diversification strategy by moving away from manufacturing-oriented industries and strengthening non-manufacturing sectors such as service, culture, and healthcare, and by activating foreign direct investment.
In the midst of the U.S.-China trade conflict, the government and companies must prepare strategic response measures to protect domestic supply chains and secure global competitiveness.
Maximizing national interests through the reorganization of international trade and investment is key in the future.

*YouTube Source: [경제 읽어주는 남자(김광석TV)]

– 저가·저품질은 옛말? 중국의 ‘기술공습’.. 한국 산업 미래는? | 경읽남과 토론합시다 | 이치훈 부장 3편

● KF-21 Export – Middle East Interest

Summary of Major Export Target Countries and Defense Project Issues

① Export Strategy Targeting Two Countries

Currently, several media reports are covering the issue of export targets aimed at two countries.
Southeast Asia and China, among other countries that have already shown interest, are the primary targets.
I believe the key point of the export and economic strategy is to focus on the national interest of South Korea and the protection of defense industry stocks.
Many military experts also emphasize the development of South Korea’s defense industry and prioritizing national interests.
In this process, it is necessary to distinguish the business characteristics of each country by synthesizing the content of media reports and the opinions of experts.

② Embargo Cases in Middle Eastern Countries and Defense Project Risks

Embargo-related issues have arisen in contracts with Middle Eastern countries.
The problem is that a domestic defense company broke the embargo after signing an export contract worth 2 trillion won.
As a result, the existing contract was canceled, and follow-up measures such as the purchase of Chinese aircraft were taken.
This case shows the risks that can occur in the national economy and defense projects.
The importance of strategic response to contract conditions and changes in the international situation is highlighted.
In this regard, the need for prioritizing national interests and securing stable international transactions is emphasized.

③ From the Perspective of Prioritizing National Interests and Protecting Defense Industry Stocks

All business and export strategies ultimately prioritize the national interest of South Korea.
All proceedings related to the defense industry and exports are ultimately policies to protect national interests.
Overseas export strategies can only succeed when a sound economy and a safe business environment are in place.
Both the government and businesses need to be mindful of international affairs and contract terms, and establish strategies that align with national interests.
According to expert opinions, this case signifies the importance of reorganizing overseas export strategies and managing economic defense risks.

Summary

According to domestic media reports, an export strategy targeting two countries, including Southeast Asia and China, is being pursued.
In particular, the embargo issue that arose in a 2 trillion won defense project contract with a Middle Eastern country suggests international transaction and contract risks.
Experts emphasize the need for a South Korean national interest-first policy and protection of defense industry stocks.
Issues related to economy, exports, defense, strategy, and national interest are at the heart of this matter.
The government and businesses must thoroughly review response measures accordingly.

*YouTube Source: [와이스트릿 – 지식과 자산의 복리효과]

– KF-21 수출, 중동 국가들이 관심 보이고 있습니다만 / 김민석 특파원