KIEP held an economic policy seminar on May 7 at the Korea Chamber of Commerce and Industry located in Jung-gu, Seoul.
KIEP held an economic policy seminar on May 7 at the Korea Chamber of Commerce and Industry located in Jung-gu, Seoul.

The Korea Institute for International Economic Policy (KIEP) held a seminar on May 7 on post-COVID-19 U.S.-China relations.

There, Ahn Deok-geun, head of the Korea Association of Trade and Industry Studies, remarked that the primary trade agreement between the United States and China is unlikely to last. “China is supposed to purchase U.S. products worth US$200 billion, but the amount cannot be reached given China’s imports from the United States,” he said, continuing, “Disputes between the two superpowers will continue, regardless of the result of the upcoming U.S. presidential election, in that the U.S. Congress is willing to put pressure.”

Acting KIEP President Chung Chul predicted that South Korea’s value chain will be significantly affected by the disputes. “This year, variables such as the U.S. presidential election and intensifying strategic competition between the two superpowers are leading to more global trade uncertainties and posing a threat to South Korea,” he remarked, adding that the COVID-19 pandemic and the resultant change in global value chain will drastically change global industrial structures and trade environments. “South Korea is likely to take a direct hit from the disputes in that a lot of goods are shipped from South Korea to the United States via China,” he added.

The head of the association also pointed out that more intra-regional cooperation can be a measure against such global value chain risks. “Regional solidarity is necessary to deal with the global decoupling to follow the pandemic and the regional supply networks of Northeast Asia need to be managed with more stability,” he said, adding, “Their regional comprehensive economic partnership has already been prepared and the three countries have to expand their trade and cooperation based on it.”
 

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