Korean media: Korean companies begin to feel the pressure of being surpassed by China's technology!
On November 17, Korean media "Global Economy" published an article stating that for a long time, China has ensured competitiveness through price reduction rather than technology, but recently, through continuous innovation, China has rapidly caught up with South Korea in the manufacturing sector.
A recent survey conducted by the Korean Chamber of Commerce and Industry on 370 domestic manufacturing companies in South Korea showed that when asked about the technical competitiveness level compared to Chinese competitors, only 32.4% of South Korean companies answered "Our technical competitiveness is ahead of China."
More respondents said there was no difference in technical competitiveness between South Korean and Chinese companies (45.4%) or that China was ahead (22.2%). Compared to the proportion of respondents who said "South Korean companies are more competitive than Chinese companies" in the 2010 survey (89.6%), this means that over the past 15 years, about 57% of South Korean companies have been caught up with or surpassed by Chinese technology.
Chinese products still maintain overwhelming price competitiveness. 84.6% of respondents said, "Our products are more expensive than Chinese products." Only 13% of respondents said, "They are about the same." 2.4% of respondents said, "South Korean products are cheaper." More than half (53%) of the companies answered, "Chinese products are 30% or more cheaper than South Korean products."
From the industry perspective, the highest percentage of respondents who said "Chinese products are 30% or more cheaper" was in the display industry, at 66.7%, followed by the pharmaceutical and biotechnology industry (63.4%) and the textile and apparel industry (61.7%).
According to trade map data from the World Trade Organization (WTO) subsidiary, the International Trade Commission, Chinese semiconductor prices account for 65% of South Korean products, batteries 73%, steel 87%, and textiles and apparel 75%.
Even in key areas where South Korea sees itself as having an advantage—production speed—China is slightly ahead. When asked about the production speed of South Korean companies compared to Chinese competitors, 42.4% of respondents said "China is faster," while only 35.4% of respondents said "South Korea is faster."
When asked about the impact of China's industrial growth in the next three years on South Korea's industries, 69.2% of respondents answered "South Korea's global market share will decline." Another 69.2% of respondents predicted "South Korean companies' sales will also decline."
Original: www.toutiao.com/article/1849001449572363/
Statement: This article represents the views of the author.