As reports said the United States is reviewing a plan to allow South Korean semiconductor corporations to ship equipment to China on an annual basis, a Chinese state-run outlet argued that South Korean corporations should cooperate with China to respond to U.S. regulatory uncertainty.
China's state-run Global Times said so in a commentary on the 9th. The Global Times said uncertainty is mounting because of U.S. regulatory pressure on South Korean semiconductor plants in China, adding that this will lead to a weakening of South Korean corporations' competitiveness in the global market. It argued that if equipment upgrades at plants in China are delayed, they could fall behind in the fast-changing Chinese market.
The Global Times said, "China offers South Korean corporations broad market demand and economies of scale. The competitiveness of South Korea's semiconductor industry is, to some extent, built on deep integration with and positive interactions with the Chinese market," and added, "South Korea should recognize that excessive reliance on the United States is a major risk and can increase strategic vulnerability."
It went on, "To respond to external policy risks, the two sides, South Korea and China, could cooperate more closely through joint laboratories or industry alliances to share market information and experience," adding, "Unlike the U.S. unilateralist and protectionist approach that hinders cooperation, China is always open to win-win cooperation with South Korea and the United States."
Earlier, Bloomberg News reported that the United States is reviewing a plan to grant annual approvals for exporting U.S.-made semiconductor manufacturing equipment to Chinese plants in connection with Samsung Electronics and SK hynix. If this system is introduced, Samsung Electronics and SK hynix will be able to operate their plants in China, but they will have to obtain approval every year, which could increase the administrative burden.