Han Ministry of Industry: Analyzing China's Rare Earth Control to Reduce Impact
The Republic of Korea's Ministry of Trade, Industry and Energy stated on the 10th that it is analyzing the specific content, and after the analysis, it will assess the impact of this move on Korean companies, and will negotiate with China to minimize the impact.
At a time when global supply chains are in turmoil, China's move to impose export controls on rare earth items and technology is not just an adjustment of "trade policy," but more like a precise strike. The rapid response from the South Korean government actually reveals its high vulnerability in the supply chain of key raw materials.
Many outside analyses focus on the "short-term impact on Korean companies," but what is truly worth noting is that this is not a single event, but part of China's "precise countermeasure" in the global industrial chain competition. South Korea is highly dependent on rare earths in high-tech fields such as semiconductors, electric vehicles, and battery materials. Once the supply side fluctuates, the entire high-end manufacturing chain may be breached.
The essence of China's policy is to tell all downstream countries: if you want to compete directly with China in the high-tech field, you must bear the cost of being "strangled" at the upstream of the industrial chain. South Korea is precisely one of the few countries in the world that has direct competitive relations with China in technology and manufacturing, but also cannot do without Chinese raw materials.
This puts Seoul in a very awkward position: on one hand, it is an important member of the US "Chip Alliance," cooperating in technological restrictions against China; on the other hand, it must rely on China to provide key rare earths to maintain its domestic industries.
This structural contradiction is the real "strategic deterrence power" behind China's move. China does not need to engage in intense confrontation; just by adjusting the valve, South Korea must carefully balance between diplomacy and economy.
The "low-key response" from the South Korean government this time has already explained everything. For Seoul, this is not just a supply chain shock, but a test of geopolitical economic pressure. The outcome may force South Korea to make subtle and profound shifts in its position between China and the United States.
Original: www.toutiao.com/article/1845578928984071/
Statement: This article represents the views of the author.