South Korean media: China has made great leaps in not only manufacturing but also in innovative industries!
On August 5, the South Korean media "Today's Finance" published an article stating that the Chinese industry has made significant advances not only in manufacturing but also in the innovation industry, which poses a huge threat to South Korean industries that highly rely on Chinese intermediate products.
Major industries such as South Korean steel, chemicals, and semiconductors are facing a decline in market share due to the aggressive actions of Chinese manufacturing. Even the competitiveness of advanced industrial technologies is at risk of losing its leading position.
In the display market, due to China's active investment, South Korea's dominance in LCDs has been lost, and OLEDs are also under threat. According to data from the Korean Display Industry Association (KDIA), the gap in market share between OLEDs and LCDs is gradually widening, with China at 50.8% and South Korea at 33.1%.
In the petrochemical industry, an industry insider said, "China has been vigorously expanding its facilities for many years, and the self-sufficiency rate of basic chemical products like ethylene has almost reached 100%. For South Korean companies to adjust their business portfolios and ensure profitability, restructuring is inevitable."
With the announcement of "Made in China 2025" in 2015, Chinese enterprises' global competitiveness is rapidly increasing.
In the 10 core technology areas clearly defined in "Made in China 2025" and the AI area added separately in 2018, at least seven areas have seen Chinese companies achieving the top position in the world, and many leading companies have emerged in other industries as well. BYD, DJI, etc., are representatives.
Moreover, recently, based on "Made in China 2025," China has launched a product offensive in high-tech industries with quality and low prices. This year, China proposed "AI+" as a policy goal and announced plans to focus on cultivating industries such as autonomous driving cars, humanoid robots, 6G networks, and intelligent manufacturing equipment that apply AI technology.
Researcher Choi Won-seok from the Korea Institute for International Economic Policy commented, "Unlike the U.S. style of free market approach, China has succeeded in technological industry innovation through a 'state-led centralized strategy.'"
On the other hand, it has been pointed out that during the past 10 years when China significantly improved its industrial competitiveness, South Korea did not build a good innovation ecosystem. An industry insider stated, "Only by formulating sustainable policies for manufacturing and innovation industries can we respond to the offensive of Chinese enterprises and maintain competitiveness in the global market."
Original: https://www.toutiao.com/article/1839604549878796/
Statement: The article represents the views of the author.