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11. Analyzing South Korea’s Semiconductor Industry: Trade Dynamics and Global Position

Author:
Hyung-gon Jeong
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
U.S. sanctions on China's semiconductor industry are causing major shifts in the global supply chain, affecting South Korea's industry due to its reliance on Chinese manufacturing. The Biden administration's increased sanctions, combined with global trends towards semiconductor self-sufficiency, are putting South Korea's semiconductor position at risk. Countries such as the U.S., China, and Japan are building up their domestic semiconductor industries, potentially affecting South Korea's position in the global market. Deeply integrated with China, Korean companies, face the challenge of reducing this dependence and adapting to the evolving supply chain landscape. This paper examines the import and export trends of the South Korean semiconductor industry over the last five years to assess its global standing, identify challenges, and suggest strategic directions. Using data from the Korea Customs Service from 2019 to 2023, the study analyzes trade patterns and supply chain configurations within South Korea's semiconductor industry. The industry is divided into six main categories and 33 subcategories, based on the analysis of 381 semiconductor-related items categorized under the Harmonized System at the 10-digit level. This detailed classification allows for an in-depth examination of trade trends, supply chain structures, and associated risks within the South Korean semiconductor industry. Moreover, this research uses the classification method described and UN Comtrade statistics to create a dataset on global semiconductor trade. This dataset is used to analyze the international presence of the South Korean semiconductor industry and its market shares in China across different segments.
Topic:
Trade, Supply Chains, and Semiconductors
Political Geography:
China, Asia, and South Korea

12. North Korea’s 2023 Trade with China: Analysis and Forecasts

Author:
Jangho Choi and Yoojeong Choi
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This article analyzes North Korea-China trade trends and statistics in 2023 to evaluate the extent of North Korea's trade normalization and its performance. North Korea's trade with China increased by more than 120% compared to the previous year as the country declared a COVID-19 Endemic and gradually eased border controls, but did not recover to 2018-19 levels, the year before the outbreak of COVID-19. Imports to China recorded 2.00 billion, 124.1% higher than the 0.89 billion in 2022. North Korea's imports from China in 2023 are estimated to be the maximum achievable given the lack of a full resumption of over-land trade. However, as the negative impact of UN sanctions on the North Korean economy is ongoing, making it difficult to normalize industrial production. North Korea mainly imported raw materials for processing trade (textile and garment raw materials), staple foods (rice and sugar), agricultural materials (fertilizer), and construction materials from China in 2023. North Korea’s exports to China stood at 0.29 billion, up 118.4% from 0.13 billion in 2023. Exports remain at the 16.9% of the level before the tightening of UN sanctions on North Korea, as the country has failed to diversify its products and expand exports of major export items. Exports were highly dependent on specific products, wigs and false eyelashes, a labor-intensive industry, accounting for 57.1% of total exports. In spite of increasing wigs export, North Korea failed to further expand its amount and diversify the export items in the second half of the year. According to the analysis of trade statistics, the main goals of North Korea's 2023 US foreign economic policy are: (1) resuming smuggling trade in textiles and clothing, (2) building irrigation canals in preparation for summer floods, (3) implementing state-led grain distribution, (4) building living houses in a rural area, and (5) increasing metal production for Russian arms exports. Despite the increase in imports from China in the transition to the coronavirus pandemic, it is difficult to say that it has yet led to the recovery of industrial production and economic development. The future of North Korea's trade with the rest of the world in 2024 will be determined by whether North Korea fully opens its borders and improves its relations with China. In 2024, both North Korea's exports and imports are expected to be slightly higher than in 2023. North Korea's exports are unlikely to increase significantly, as North Korea-Russia military cooperation is expected to continue and China is likely to maintain its checks on the growing Sino-Russian alignment. Increased imports will lead to a larger trade deficit, but it will be within North Korea's ability to manage for one to two years.
Topic:
Economics, Border Control, Trade, and COVID-19
Political Geography:
China, Asia, and North Korea

13. China and Latin America: A New Assessment

Author:
Parsifal D'Sola Alvarado and Xiaobo Lü
Publication Date:
02-2024
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
Parsifal D'Sola, a MARSEA alum, will deliver a presentation offering a general overview of the current state and prospective trends in China-Latin America relations. The talk will explore the evolving interactions and strategic dynamics between China and Latin American countries, highlighting developments over the past two decades. Key areas of discussion include the impact of the Belt and Road Initiative in Latin America and the peripheral effects of US-China tensions on the region. An important aspect of the presentation will be examining the diverse perceptions of China across Latin American countries and how these views influence bilateral relations and policy decisions. D'Sola will also share his thoughts on future trends, offering a broad perspective on the likely course of China's engagement with Latin America in the coming years. Speaker's Bio: Parsifal D’Sola is the founder and executive director of the Andres Bello Foundation – China Latin America Research Center in Bogota, Colombia. He is a non-resident senior fellow at the Atlantic Council’s Global China Hub. Parsifal is a Chinese foreign policy analyst specializing in Sino-Latin American relations with a focus on Venezuela. Between 2019 and 2020, he acted as Chinese foreign policy advisor to the Foreign Affairs Minister of the Interim Government of Venezuela. He holds a BS in Telecommunications Engineering from Universidad Católica Andrés Bello, an MA in East Asian Studies from Columbia University, an MSc in International Politics from the School of Oriental and African Studies, London University, and an advance language diploma from Beijing Language and Culture University.
Topic:
Foreign Policy, Bilateral Relations, Belt and Road Initiative (BRI), and Trade
Political Geography:
China, Asia, and Latin America

14. German Ports and China: How to Reconcile Openness, Resilience and Security?

Author:
Marie Krpata
Publication Date:
04-2024
Content Type:
Case Study
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Germany is dependent on its ports for the smooth running of its open economic model and has benefited from globalization in recent decades when the internationalization of its value chains strengthened its competitiveness. Yet, with today’s hardening geopolitics, the vulnerabilities of Europe’s leading economic power are becoming apparent. Germany’s ports are an indispensable interface between its production base and its export markets, as well as for its sources of supply. Crucial to its competitiveness, Germany’s ports are becoming increasingly indispensable for energy supplies given the country’s decoupling from Russian hydrocarbons, and they are essential for the deployment of military equipment to Europe’s eastern flank. This is why particular vigilance is required in ports such as Hamburg, where the Chinese shipping company COSCO has acquired a stake in the company operating the Tollerort terminal. This transaction would scarcely have worried anyone in the past. But now it is the subject of bitter discussions, with the Zeitenwende (“change of era”) announced by Olaf Scholz in reaction to Russia’s war of aggression against Ukraine. Increased caution seemed to gain a foothold in order not to repeat past mistakes –until the German Chancellor decided in favor of the acquisition. Given closer ties between China and Russia, China’s assertive stance on the international stage, and increased pressure on Germany from its American ally to clarify its position with regard to its main trading partner, Germany is seeing its room for maneuver shrink. Today, we need a more European approach that goes beyond short-term, profit-driven concerns. But to achieve this, we need to put in place a range of resources to be deployed in a resolutely cooperative approach.
Topic:
Security, International Trade and Finance, Sports, Trade, Industry, and Resilience
Political Geography:
China, Europe, Asia, and Germany

15. How to de-risk: European economic security in a world of interdependence

Author:
Jean Pisani-Ferry, Beatrice Weder di Mauro, and Jeromin Zettelmeyer
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Pandemic-related supply disruptions, the energy crisis provoked by Russia’s invasion of Ukraine and economic coercion by China have put economic security high on the European Union policy agenda. The question is how exactly the EU should ‘de-risk’ its external economic relationships without foregoing the benefits of trade. The standard answer is that it should identify product-level trade dependencies, mainly on the import side, and reduce them, mainly through diversification of suppliers, while otherwise maintaining maximum trade integration. This Policy Brief argues that this answer falls short. First, product-level dependencies cannot be identified reliably even with sophisticated analysis and data. As a result, both ‘missed dependencies’ and ‘false positives’ are inevitable. Second, external shocks and coercion could be propagated through exports, productive assets held abroad and financial channels as much as through imports. The analysis has five main implications Import de-risking should focus on a few product categories for which the costs of supply interruptions would be unquestionably large. This reduces false positives. De-risking and/or buffers to deal with exports and financial coercion require more attention. De-risking must be complemented by raising resilience against all shocks, whatever theirorigin. This requires a deeper and broader European single market. De-risking and resilience must be complemented by deterrence. A sufficiently high probability of chronic trade conflict – or one very large conflict – may justify reducing overall integration with a large trading partner, on both the export andimport sides. EU economic security policies have been right to emphasise the reduction of import dependence on chips and critical raw materials, and the creation of a powerful legal instrument to deter coercion (the Anti-Coercion Instrument). In most other respects, there is room for improvement.
Topic:
European Union, Risk, Trade, Imports, Economic Security, and Interdependence
Political Geography:
China and Europe

16. Global supply chains: lessons from a decade of disruption

Author:
Luca Léry Moffat and Niclas Poitiers
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
This paper explores both the character and impact of three recent shocks to global supply chains: the COVID-19 pandemic, the Russian invasion of Ukraine and the US-China trade war. These were large shocks which have had significant impacts on domestic and international supply chains, but these impacts have differed in their longevity, economic impact and policy responses. We show that supply chains were remarkably resilient against shocks of such magnitude. However, this resilience was also achieved thanks to the equally remarkable size and scope of policy responses and global supply chain reorganisation. We recommend that pre-emptive policies may be justified to shield households and industry from future shocks. Given the entangled nature of these shocks and that their effects continue to reverberate, we emphasise the need for extensive future research to understand the nature of these shocks and the effectiveness of policy responses.
Topic:
Global Markets, Trade Wars, Trade, COVID-19, Supply Chains, and Russia-Ukraine War
Political Geography:
China, Global Focus, and United States of America

17. Biden-Xi Woodside Summit and the Slow Rehabilitation of US-PRC Ties

Author:
Sourabh Gupta
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
The “guardrails” that President Biden and President Xi envisaged in Bali in November 2022 began to be emplaced at their November 2023 summit in Woodside, California. In-person, leader-led communication was deepened, reassurances exchanged, and practical—albeit modest—“deliverables” locked down on several fronts, including restarting mil-mil communications, cracking down on fentanyl precursors, addressing the national security harms of artificial intelligence (AI), and increased people-to-people exchanges. The establishment of numerous bilateral working groups will ensure an almost full plate of across-the-board consultations in 2024 as well as the means to troubleshoot irritants on short notice. As stabilizing as the Woodside summit was, it failed to deflect the US-PRC relationship from its larger overall trajectory of “selective decoupling” across a range of advanced technologies and frontier industries (microelectronics; quantum; AI; biomanufacturing; clean energy). Strategic trade controls and other competitive actions were doubled down upon. With a pivotal US presidential election looming in 2024, questions abound on the longer-term durability of a rehabilitating US-PRC relationship.
Topic:
Diplomacy, Bilateral Relations, Trade, Xi Jinping, and Joe Biden
Political Geography:
China, Asia, North America, and United States of America

18. The Strategic Adjustments of China, India, and the US in the Indo-Pacific Geopolitical Context

Author:
Binh Nguyen, Hiep Tran, Co Nguyen, and Vuong Nguyen
Publication Date:
04-2024
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
Since the beginning of the XXI century, the Indo-Pacific region has become the “focus” of strategic competition between the world’s great powers. This area included many “choke points” on sea routes that are strategically important for the development of international trade, playing an important role in transporting oil, gas, and goods around the world from the Middle East to Australia and East Asia. The article analyzed the geostrategic position of the Indo-Pacific region and the strategic adjustments in foreign affairs of some major powers in this region, specifically the US, China, and India. To achieve this goal, the authors used research methods in international relations to analyze the main issues of the study. In addition to reviewing previous scholarly research and reviews, the authors used a comparative approach to assess the interactions between theory and data. The authors believed that these data are important for accurately assessing the strategic importance of the Indo-Pacific region, and this area was an important trigger for the US, China, and India to make adjustments to its foreign policy. If the US proposed a strategy called “Free and Open Indo-Pacific” (FOIP), India’s strategy was called the Indo-Pacific Initiative. China’s Indo-Pacific strategy was clearly expressed through the “String of Pearls” strategy and the “Belt and Road Initiative” (BRI). As a result, in the geopolitical context of the Indo-Pacific region, the competition between major powers (the US, China, India...) is also becoming fiercer and more complex. It has a significant impact on other countries in the region.
Topic:
Geopolitics, Trade, and Strategic Interests
Political Geography:
China, India, United States of America, and Indo-Pacific

19. Figures on the Billiard Table: EU-China Dynamics in the Wake of the 2024 European Elections

Author:
Bart Dessein and Jasper Roctus
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
While still a powerhouse in its own right, Europe’s relative influence on the world stage has been diminishing over the last few decades. Data, for example, highlight a significant shift in global trade patterns away from the old continent. According to a recent Brookings’ calculation, South-South trade had by 2009, i.e., around the time of the global financial crisis, increased from 10.9 per cent to 25.0 per cent worldwide. South-South trade thus surpassed North-North trade for the first time in world history. Today, 35.0 per cent of global trade is accounted for by South-South merchandise trade, and just 25.0 per cent of global trade is North-North trade. One important factor in this is a surging China-Africa trade. With China’s bilateral trade with Africa rising from 2.7 billion dollar in 1990 to 209 billion dollar in 2022, China has now become Africa’s single largest trading partner.
Topic:
Bilateral Relations, Elections, European Union, Trade, and Strategic Partnerships
Political Geography:
China, Europe, and Asia

20. Beyond Target: Indirect Impacts of Antidumping

Author:
Sébastien Jean and Kevin Lefebvre
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper investigates the bilateral impacts of antidumping measures, beyond directly targeted products and exporting firms. It focuses on the country whose exports are most exposed to such measures, China. Productlevel analysis shows that export volumes are negatively affected for products similar to a product targeted by an antidumping case, i.e. belonging to the same tariff heading. Using firm-level data, we show that this impact is driven by within-firm contagion: targeted firms not only cut their exports of targeted products, they also reduce significantly their exports of non-targeted products. The decrease is half as large for the latter than for the former, but the total impact on bilateral trade is far larger, because the value of export flows affected by these indirect impacts is ten times larger than the value of directly targeted export flows. In addition, interestingly, this effect is more pronounced for small and private firms.
Topic:
Business, Exports, Trade, Spillovers, and Antidumping
Political Geography:
China and Asia