Korean government welcomes Xi's visit to LG Display plant in China

Politics

Published: 14 Apr. 2023, 15:50

Korean government welcomes Xi's visit to LG Display plant in China

Chinese president Xi Jinping, left, at LG Display’s production plant in Guangzhou, China, on Thursday. The Chinese president is reported to have had a tour of the display production plan for an hour. [PEOPLE’S DAILY ONLINE]

The Korean government responded positively to Chinese President Xi Jinping's visit to an LG Display production plant in Guangzhou, southern China on Thursday.

It was Xi's first visit of a Korean company in China since he assumed power in 2012.

“It is a reflection on the necessity of economic cooperation between Korea and China as well as the improving relationship between the two countries,” said an official at the Korean Foreign Ministry.

According to reports from China, Xi said during his tour of the plant that he hopes that foreign companies will continue to seize opportunities in China and put down roots in the Chinese market.

The move has been interpreted as a gesture of good will regarding the frayed relationship between the two neighboring countries since the deployment of a U.S. missile defense system in South Korea in 2017.

China retaliated against Korea by restricting tourism as well as Korean cultural and entertainment products.

Some Korean retailers that previously thrived had to pull out, including Lotte, which closed its last department store last year.

The retail giant once had as much as five department stores in China.

Fashion and cosmetic companies that once dominated the Chinese market either pulled out or downsized.

The Moon Jae-in government repeatedly tried to mend the relationship with Xi by asking the Chinese president to make a state visit, but to no avail.

However, the situation has recently changed, especially since the U.S. began ramping up efforts to isolate China, including the passage of laws such as the CHIPS Act that restricts China’s access to high-performance semiconductors developed by global companies like Samsung Electronics.

In fact, China is now aggressively reaching out to foreign companies.

Last month, China held its first state-sponsored China Development Forum in Beijing since the Covid-19 hiatus.

The forum, which is an opportunity for businessmen to meet high-ranking Chinese government officials, invited some 50 global companies including Apple, Qualcomm and Samsung Electronics.

Apple’s Tim Cook and Samsung’s Lee Jae-yong attended the event.

“The latest forum demonstrates China’s confidence that global companies are bound to come to China despite pressure from the United States,” said Jeon Byeong-seo, director of the Institute of Chinese Economic and Financial Research.

LG Display plant in Gaungzhou is one of the biggest foreign-financed production plants in the area.

The plant was first built in 2006 and now a key overseas production plant for the Korean display manufacturer.

The company’s first overseas OLED production line went into operation in 2019.

BY LEE HO-JEONG, SHIN KYUNG-JIN [lee.hojeong@joongang.co.kr]