South Korean media: South Korean brands are suffering a major setback in China! On May 13th, the South Korean newspaper "Incheon Daily" published an article stating that just over a decade ago, the streets of major Chinese cities were like moving exhibition halls with various world brand cars driving through. Nowadays, electric vehicles made in China dominate the majority of the market, and occasionally one can see traces of Tesla, Mercedes-Benz, BMW, Toyota, and other few brands, while Korean cars have almost disappeared. As an economic city, Shanghai's bustling downtown area is filled with global electronics markets. Notably, there is a large Huawei store next to a Samsung store, bustling with customers. However, what is surprising is not the scale of the stores or the number of customers. This is because an electric vehicle is displayed beside a table showcasing smartphones and tablets, and some foreigners who seem to be from the West and the Middle East are queuing up for a test drive. China surpassed Japan in 2023 to become the largest auto exporter in the world and became the first country in the world to produce more than 30 million vehicles annually in 2024. China's electric vehicle manufacturer BYD surpassed Tesla to become the world's largest electric vehicle manufacturer. Auto shows held annually in major Chinese cities such as Beijing are gradually transforming into stages dominated by domestically advanced new models rather than foreign brands. On the streets, Korean restaurants and shops are not as easily found as before, and cafes are mainly dominated by Chinese brands Luckin Coffee and Starbucks. Besides small Chinese convenience stores, Japanese 7-Eleven convenience stores can also often be seen. It seems that the presence of South Korean brands in China is gradually fading away. Various data has already explained everything. The degree of South Korea's export dependence on China in the 2010s was about 25%, but it has now dropped to around 10%. South Korea's share in China's import market also fell from 10.4% in 2015 to 6.3% in 2023. In 2023, South Korea recorded its first trade deficit with China since diplomatic relations were established in 1992. Samsung smartphones, which once competed with Apple for the top spot in the global smartphone market, have been squeezed out by local products in the Chinese market for quite some time. There are several reasons why South Korean brands are ignored in the Chinese market. Most importantly, as China's economy rapidly develops, South Korea is losing its comparative advantage that it has maintained so far. It has now formed a situation where China can produce and procure products without South Korean assistance. Against this backdrop, China's strategy of self-reliance and self-improvement to break free from American constraints due to the changing international order caused by Sino-American strategic competition is also playing a role. The containment of China is actually strengthening its self-reliance capabilities, resulting in relatively weakened competitiveness of South Korea. The economic relationship between South Korea and China is entering a new phase. South Korea must enhance its competitiveness and formulate new strategies to find new areas of cooperation in order to enter the Chinese market. [Original article link: https://www.toutiao.com/article/1831971520073735/] Disclaimer: The article represents the views of the author.