[NEWS IN FOCUS] China aims to keep Korea on side with high-profile visits, broadcasts

Economy

Published: 19 Apr. 2023, 18:57 Updated: 19 Apr. 2023, 19:47

[NEWS IN FOCUS] China aims to keep Korea on side with high-profile visits, broadcasts

Chinese president Xi Jinping, far right in the first row, browses LG Display’s panel at the company's production plant in Guangzhou, China, on April 12. [PEOPLE’S DAILY ONLINE]

China is trying to court Korean companies through high-profile visits by political leaders and broadcasts amid intensified rivalry with the United States to attract investment and manufacturing facilities for advanced technologies.

State-owned broadcaster China Central Television (CCTV) aired a series of interviews featuring employees of Korean companies in its prime time news program called Xinwen Lianbo.

In introducing the participants of a trade show called Canton Fair in Guangzhou, the daily news showed an employee from Maxsun, a Seoul-based portable gas manufacturer, on April 16.

A few days ago, the program highlighted Hyundai Motor’s hydrogen fuel cell technology.

An employee at Maxsun, a Seoul-based portable gas manufacturer, is interviewed during a news program aired on CCTV. [SCREEN CAPTURE]

Given that CCTV’s format and content is carefully directed by the Propaganda Department of the Chinese Communist Party, also an owner of the media outlet, some see the latest broadcasts as a friendly gesture from Beijing toward Korea.

Chinese President Xi Jinping made headlines on local media outlets last week when he visited an LG Display plant in Guangzhou.

Xi underlined the importance of economic cooperation between Korea and China and market potential in the world’s second largest economy.

“I hope that foreign investors will come to China to seize on an opportunity, deeply tap into the market and generate stellar performance for corporate growth,” Xi is quoted as saying by Xinhua News Agency.

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

While some say that China’s amicable approach is just an effort to woo foreign investors, others say that the intention is to send a warning signal to the Korean government and companies that are seen to be aligning themselves with the U.S.

Big corporations including Samsung Electronics, SK hynix and Hyundai Motor all announced multi-billion-dollar investments on U.S. soil, following Washington’s push to cut off China from access to key technologies like advanced chips.

The tech and auto giants haven’t made any major investments in China in recent years amid the deteriorating relationship between the United States and China.

“Xi’s visit was made while Korea-China relations are in a delicate state,” a report by Kiwoom Securities noted.

“It is intended to highlight the bilateral tie and counter the so-called ‘China decoupling,’” the report said.
China is eager to stop Korean display companies from siding with the U.S., according to a source in the local display industry.

“As the U.S. will possibly extend the area of restriction to displays, on top of semiconductors, the Chinese government is trying to send a warning signal to the Korean government and companies if they are to engage in the U.S.-led supply chain management for advanced industries,” the source, who spoke on the condition of anonymity, said.

The U.S. Commerce Department limits recipients of Chips and Science Act funding from investing in the expansion of semiconductor manufacturing in China. The U.S. also banned advanced semiconductor manufacturing equipment from entering the country.

Despite the U.S.'s effort, China is flexing its business clout especially after it lifted its Covid-19 lockdown this year.

Last month, China held its first state-sponsored China Development Forum in Beijing since the Covid-19 hiatus, making it a platform for foreign businesspeople and high-ranking Chinese government officials.

The forum invited some 50 global companies including Apple, Qualcomm and Samsung Electronics.

Apple CEO Tim Cook and Samsung Electronics Executive Chairman Lee Jae-yong were present.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]