S.Korea's economy no longer supported by China: BOK head

[beijingwalker]

Well, if you believe that, you must also believe that China's fast growth was supported mainly by the US, EU and Japan and the good old days are over for China as well.

Lol, doesn't seem it's over

China Posts Record Trade Surplus ，$873 billion，for 2022 Despite Slowing Demand​

Imports increased about 1.5% from a year earlier.

Bloomberg

January 13, 2023, 2:22 AM UTC
China’s annual trade surplus hit a record high in 2022 in yuan terms, as surging exports through the first half of the year offset a global drop-off in demand that worsened in the final quarter.

The surplus widened to 5.87 trillion yuan ($873 billion) last year, according to Bloomberg calculations based on data released by the General Administration of Customs on Friday. That easily surpassed the previous year’s record of 4.3 trillion yuan.

Bloomberg - Are you a robot?

Analysis Of China's Colossal $878 Billion Trade Surplus

Analysis Of China's Colossal $878 Billion Trade Surplus Why *everything* is Made In China SHIVANI 2023年5月16日 As one of the world's largest economies, China has become a major player in global trade. Today we’re taking a deeper look at China’s colossal $878 billion trade surplus. Trade...

defence.pk

China's overall international trade surpasses $570 bn in Mar 2023

China's overall international trade for March 2023 reached $570.5 billion, a 2 per cent YoY increase. Exports of goods amounted to 1.85 trillion yuan, while imports were...

www.fibre2fashion.com

China trade surplus widens in April, bigger-than-expected growth

China's trade surplus surged to $90.21 billion in April 2023 from $49.47 billion in the same period a year earlier, easily beating market forecasts of $71.6 billion.Exports rose by...

seekingalpha.com

 

[Paji]

In his dream, yes, he really do believe South Korea was supported alone by China.....

In reality

View attachment 931173

Also, a substantial portion of South Korean exports to China are intermediate goods that go inside products that China itself exports. If a company moves production from China to India, for example, the Korean chips powering those products will simply be re-routed to India.

 

[etylo]

Well, if you believe that, you must also believe that China's fast growth was supported mainly by the US, EU and Japan and the good old days are over for China as well.

Yeah, in 2023, China GDP is expected to grow at least 5.3%, US at 0.7%, EU at 0.7% and Japan at 1.8%. Talk of who depends on who now.

 

[jhungary]

Also, a substantial portion of South Korean exports to China are intermediate goods that go inside products that China itself exports. If a company moves production from China to India, for example, the Korean chips powering those products will simply be re-routed to India.

Yes, a lot of them are OEM product, which China needed for their manufacturing process.

Also, don't forget the domestic market, a large bulk of South Korean product was consumed by South Korean themselves.

 

[beijingwalker]

Exports to China used to be a pillar for Korea's economy, but with the deterioration of the relations goes the steady decline of Korea's trade and exports. Korea could become a net trade deficit nation from now on.

 

[zhxy]

View attachment 931175

Xuất khẩu sang Trung Quốc từng là trụ cột cho nền kinh tế Hàn Quốc, nhưng cùng với sự xấu đi của mối quan hệ, thương mại và xuất khẩu của Hàn Quốc ngày càng đi xuống. Hàn Quốc có thể trở thành quốc gia thâm hụt thương mại ròng kể từ bây giờ.

That happened a long time ago. I remember the THAAD incident. China has heavily imposed sanctions on South Korea, seeking to isolate South Korea. At that time, many Chinese were confident that South Korea would collapse and had to kneel and beg China.

But, all of that did not happen. South Korea is fine, they continue to persist in deploying THAAD in their territory.

Of course, South Korea could change its stance and beg China to lift the embargo, but they never will. Because if they accept the compromise, it will become South Korea's weakness and be used by China. In the future, if a conflict occurs, China will adopt similar measures.

South Korea will not compromise because of some economic interests. National interest is above all.

South Korea has learned an important lesson from that event, and it has taken many measures to limit its dependence on China. That is why recently, when South Korea accelerated the deployment of THAAD, China did not re-impose sanctions. Because that doesn't bring much effect.

"What doesn't kill you, it only makes you stronger"

 

[Paji]

View attachment 931175

Exports to China used to be a pillar for Korea's economy, but with the deterioration of the relations goes the steady decline of Korea's trade and exports. Korea could become a net trade deficit nation from now on.

There is nothing inherently wrong with being a trade deficit nation as long as the economy is growing and the current account deficit is being financed through a capital account surplus on favorable terms. The United States is the best example. For years, Chinese workers worked long hours to produce goods for American consumers living the good life and, in return, SAFE bought trillions of dollars of American bonds paying close to zero interest.

 

[beijingwalker]

There is nothing inherently wrong with being a trade deficit nation as long as the economy is growing and the current account deficit is being financed through a capital account surplus on favorable terms. The United States is the best example

And India yourself is another example of course. US can print and manipulate dollar, what can you do?

Top surplus countries

Top deficit countries

 

[Paji]

Well India's trade deficit is financed by FDI and non resident Indians buying real estate at exorbitant prices, for example. It's not like Pakistan, where they have to go around with a bowl in hand.

 

[beijingwalker]

Well India's trade deficit is financed by FDI and non resident Indians buying real estate at exorbitant prices, for example. It's not like Pakistan, where they have to go around with a bowl in hand.

But you are in the same category, check out the charts.

 

[IblinI]

I honestly don't know why they think it is good for China when South Korea economy going independent from China.

Most EU country have strong ties (not even dependence, maybe for gas and oil) in Russia, and it burn them pretty good when that singular dependency exploded. And you are talking about a dependence here.

It's NEVER a good thing for any country to depends on a singular market. You don't really need to study economy to know that. You always have an alternative (or better yet, alternative to the alternative) and a backup plan, you always divert your investment to lower the risk management.

Now, here is something you will learn from economic classes. While market depends on supplies and demand, demand always, again, ALWAYS, trump supply. Because trading is a logical action. As a buyer, you don't buy more because your supplier offers more, you buy more because you need more. On the other hand, if you are a producer, you don't produce more because you have the capability to do so, you produce more because there is more demand of said product. Hence Demand ALWAYS trump supplies.



Again, you have misused the term "trade deficit" it did not mean the way you mean in this sense.

And South Korea has been in Trade Deficit mostly since 2020.

View attachment 931171

小伙子,你比韩国人乐观多了...

a large bulk of South Korean product was consumed by South Korean themselves.

OK, I know your level on knowledge about SK now.

 

[beijingwalker]

South Korea Seeks High-Level Economic Talks With China​

• Korea finance chief, China ambassador to SKorea meet in Seoul
• Korea wants China’s help for meeting with economy ministers

By Sam Kim
May 19, 2023, 1:00 AM UTCUpdated onMay 19, 2023, 1:39 AM UTC

South Korea is seeking high-level economic talks with China this year in the latest efforts to revitalize supply-chain cooperation with the world’s second-largest economy.
Finance Minister Choo Kyung-ho asked Xing Haiming, Chinese Ambassador to South Korea, for support in arranging talks between their economic ministers in Seoul, Choo’s office said in a statement. Choo is also Korea’s deputy prime minister.

South Korea Seeks High-Level Economic Talks With China

South Korea is seeking high-level economic talks with China this year in the latest efforts to revitalize supply-chain cooperation with the world’s second-largest economy.

www.bloomberg.com

 

[Paji]

But you are in the same category, check out the charts.

Well the US and India can sustain their trade deficits without a problem because they are seen as attractive capital investment destinations whereas Pakistan cannot because it is not. China had the biggest trade surplus in its history in 2022, yet recorded the slowest growth since the 1970s. A trade surplus for a manufacturing country just means that foreigners get to enjoy the goods that your workers slog to produce. It can be a positive or negative for the economy depending on many other factors. Do you think Chinese workers get a good deal when they slogs for multiple shifts that are enjoyed by people on social security in the US whose payments are financed by the trillions in low interest US debt that is bought by countries like China ? In fact the trade surplus is a big risk for China as it faces trade wars and Xi has been trying to grow domestic consumption and reduce the reliance on exports.

 

[beijingwalker]

May 19, 20239:48 AM GMT+8Last Updated 4 days ago

South Korea tells China ambassador it hopes for continued economic cooperation​

South Korea tells China ambassador it hopes for continued economic cooperation

South Korea's finance minister on Friday met the Chinese ambassador and discussed economic cooperation, as diplomatic tensions with Beijing put an additional dent on the already sluggish economy.

www.reuters.com

Well the US and India can sustain their trade deficits without a problem because they are seen as attractive capital investment destinations whereas Pakistan cannot because it is not. China had the biggest trade surplus in its history in 2022, yet recorded the slowest growth since the 1970s. A trade surplus for a manufacturing country just means that foreigners get to enjoy the goods that your workers slog to produce. It can be a positive or negative for the economy depending on many other factors. Do you think Chinese workers get a good deal when they slogs for multiple shifts that are enjoyed by people on social security in the US whose payments are financed by the trillions in low interest US debt that is bought by countries like China ? In fact the trade surplus is a big risk for China as it faces trade wars and Xi has been trying to grow domestic consumption and reduce the reliance on exports.

Lol, Chinese working conditions are much better than you Indians at least, US can print manipulate money, we'll see what India can do and how long you can last just buying and not selling.

 

[zhxy]

May 19, 20239:48 AM GMT+8Last Updated 4 days ago

South Korea tells China ambassador it hopes for continued economic cooperation​

South Korea tells China ambassador it hopes for continued economic cooperation

South Korea's finance minister on Friday met the Chinese ambassador and discussed economic cooperation, as diplomatic tensions with Beijing put an additional dent on the already sluggish economy.

www.reuters.com

1. Koreans don't want to put all their eggs in one basket
2. Koreans will not compromise on matters related to core interests

So, if China thinks that the Koreans are begging China or that they will accept all conditions from the Chinese side, China has misunderstood the problem.

Assuming that the Chinese leaders agree with the Chinese members on this forum, it is very likely that they will seek to intimidate South Korea, force South Korea to compromise on all terms, or China and South Korea will separate completely. China's leaders will conclude that China wins in all scenarios


Time will answer.