South Korea’s exports to China are down, while shipments to the United States are up.
Experts say there are a number of reasons, including China’s prolonged “zero-COVID” lockdown measures and ongoing trade tensions between the two global superpowers.
Reporting by Lee Seung-jae.
Recent data from the Korea International Trade Association shows that South Korea’s exports to China are down, while its exports to the United States are up.
In the first half of 2022, China’s share of South Korea’s total exports was 23.1%, while the United States captured 15.7%.
For China, it was down from 25.1% in the first half of 2021, while for the United States it was up from 15.3% in the same period.
Moreover, the share of exports to the United States has been steadily growing every year.
Experts have cited a number of reasons why South Korea’s exports to China have declined.
Prolonged COVID-19 lockdown measures in China have slowed the entry of products into the country. But some experts say China has also seen an improvement in its manufacturing technology, leading to an increase in domestic production.
South Korea is also seeing its trade deficit with China increase. South Korea’s trade balance showed a deficit of US$1.1 billion for May and a trade deficit of US$1.2 billion for June.
From July 1 to July 20, the trade deficit is $1.5 billion.
Meanwhile, South Korea’s export figures to the United States have increased over the years.
Experts say the US-China trade war that started in 2018 means the US buys more South Korean products than Chinese products.
But also, with South Korean companies investing heavily in R&D, observers say the United States may continue to seek out South Korean products, hoping to counter the effects of its protracted trade war with China.
Lee Seung-jae, Arirang News.