South Korea is under subtle pressure from China following reports that it may join the United States in export restrictions against China. During a visit to China for the China Development Forum (CDF), SK hynix has been highlighted by Chinese officials emphasizing the importance of the Chinese market, warning against making harmful decisions due to incorrect judgments.
The Global Times (GT), the English edition of China’s state-run Global Times, pointed out in an editorial on March 25 that “In the complex situation where the U.S. is pressuring various countries, including South Korea, to isolate China from the global semiconductor supply chain, SK hynix’s statement serves as a window into the growing importance of the Chinese market.”
The “statement” referred to by GT was made by Kwak No-jung, president and CEO of SK hynix, during his visit to China, where he met with Wang Wentao, China’s Minister of Commerce, and stated, “China is SK hynix’s most important production base and sales market. We will actively target the Chinese market and work harder for greater success in our China business.”
Minister Wang responded, “We hope SK hynix will continue to increase its investment in China, further open up the Chinese market, and share growth opportunities in China’s high-quality development.”
According to previous reports from domestic and international media, the U.S. has requested its allies, including South Korea, to join export controls against China.
GT emphasized, “China is a major consumer of semiconductors, and losing the Chinese market could be a matter of life or death for global manufacturers. SK hynix must continue investing in China and develop more high-performance semiconductors to keep up with trends.”
Should the U.S. continue to strengthen export restrictions against China, South Korean companies could enhance cooperation with local supply chains in China, GT suggested.
GT also noted, “As China’s domestic chip technology rapidly advances, narrowing the technological gap between China and South Korea, this means that South Korean companies operating in China can receive more support from the domestic supply chain.”