China ‘supplementing’ South Korean industrial development model as tech sectors catch up
- Trade between China and South Korea previously operated on a win-win basis as displays and semiconductors flowed across the Yellow Sea
- Competition has intensified in the chemical, general machinery, automobiles, electricity and machinery industries sectors within the middle and hi-tech industries
As China’s industrial structure is advancing and catching up to South Korea, many have been pointing out that relations between the two Asian heavyweights are gradually transforming from being complementary to competitive.
But in recent years the two countries have begun to compete in middle and hi-tech industries, with the once complementary dynamic now on the decline and China’s hi-tech industry becoming increasingly important.
According to the Institute for International Trade at the Korea International Trade Association, competition has intensified in the chemical, general machinery, automobiles, electricity and machinery sectors within the middle and hi-tech industries.
In terms of cutting-edge technology industries, competition has intensified in aerospace and medical and precision optical equipment, the research showed.
China is seen to be going through a similar industrial structure progression that South Korea went through, although it is not following the exact footsteps in terms of industrial policies, economic experts from both countries said.
