Korean Companies Stand to Benefit
The Korea International Trade Association announced on Oct. 13 that China’s share in the U.S. communications equipment market dropped from 49.2 percent in 2018 to 24.5 percent in 2021 and then to 19 percent in the first half of this year.
“The share in the global market rose from 40.1 percent in 2012 to 44.7 percent in 2018 and fell to 39.2 percent in 2021,” the association said in its report, adding, “This has to do with the restrictions on Huawei the United States implemented in order to retain its leading position in the global 5G industry.”
According to the report, South Korea has benefited little from the restrictions but South Korean communications equipment suppliers can find global opportunities down the road.
Their annual exports decreased from US$1.37 billion in 2015 to US$0.7 billion in 2019 but topped US$1 billion in 2021. These days, Samsung Electronics is increasing its supply to the United States, India, Canada and the United Kingdom. At the same time, major companies such as Ericsson and Nokia are trying to avoid China risks by working more closely with South Korean companies in the industry.