China and South Korea agree to strengthen cooperation in chip industry
The People’s Republic of China and South Korea, officially the Republic of Korea, have agreed to strengthen talks and cooperation on semiconductor industry supply chains.
Wang Wentao, the Minister of Commerce of the People’s Republic of China, met with Ahn Duk-geun, South Korean Trade Minister, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) conference in Detroit, the largest city in the midwestern state of Michigan, on Friday.
Wang Wentao and Ahn Duk-geun exchanged views about the semiconductor industry supply chain and chip industry. They also discussed various issues of mutual concern. They also agreed to cooperate in bilateral, regional and multilateral fields.
According to a statement from the Chinese Ministry of Commerce, the two leaders also agreed to maintain the stability of the industrial supply chain.
The Minister of Commerce of China expressed his country’s willingness to work with South Korea to expand trade ties and investment in various fields.
According to South Korea, the country’s trade minister reportedly asked China to stabilise the supply of main raw materials for manufacturing.
Recently, South Korea asked the United States (US) to review its criteria for new semiconductor subsidies. South Korea also expressed concern over the impact of US criteria to limit chip investment in countries like China.
In March this year, the US proposed rules to prevent China from investing or tapping funds from semiconductor manufacturing and research under the CHIPS Act. Under the CHIPS and Science Act, the US announced $280 billion in funding to improve the research and manufacturing of semiconductors in the country.
South Korea’s Samsung and SK Hynix had invested billions of dollars in chip companies and factories in China. The companies also expressed concern over the US CHIPS Act.
According to the South Korean trade ministry data, around 40 per cent of South Korea’s chip exports go to China.