China flashpoint emerges in Korea-U.S. ties ahead of pivotal trade talks

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China flashpoint emerges in Korea-U.S. ties ahead of pivotal trade talks

Published: 09 Jun. 2025, 07:00

PARK EUN-JEE
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Audio report: written by reporters, read by AI

President Lee Jae-myung, right, then leader of the Democratic Party, visits the residence of then-Chinese Ambassador Xing Haiming in Seongbuk District, northern Seoul, on the afternoon of June 8, 2023, and tours the premises. [NEWS1]

[NEWS ANALYSIS]

On the first day of Lee Jae-myung’s presidency, one of the most sensitive flashpoints in Korea-U.S. relations quickly surfaced: China.

The United States expressed concern over any influence China may have in the region, with Lee widely expected to reach out to Beijing to some degree — an overture that some analysts warn could complicate the ongoing trade negotiations and the issue of defense cost-sharing for U.S. troops.

Traditionally, liberal presidents like Lee have been more open to China, while conservative predecessors, including Yoon Suk Yeol, prioritized the alliance with the United States.

That tendency may rear its head, with Korea and the United States agreeing to finalize a tariff-related deal by July 8, an initiative that Lee said during his campaign he is “in no rush” to conclude.

But that stance appears to have changed, with Lee and U.S. President Donald Trump “agreeing to work together to quickly reach an agreement that satisfies both sides regarding the Korea-U.S. tariff negotiations as soon as possible” during their first phone call on Friday.

‘Strategic ambiguity’ weighs in

Asked by Reuters to comment on the election, a White House official praised Korea's "free and fair election," but took it a step further by expressing concern and opposition "to Chinese interference and influence in democracies around the world" in the same breath.

Just days before, U.S. Defense Secretary Pete Hegseth struck a stern tone toward allies during the Shangri-La Dialogue on May 31 by cautioning that playing both sides — seeking military support from the United States and economic support from China — carries risk.

Observers say that the series of remarks is intended to warn of “strategic ambiguity” often adopted by former presidents affiliated with Korea's Democratic Party; an effort to strike a balance between China and the United States.

But some experts believe that such a tactic can hardly hold up against the Donald Trump administration.

Left: Chinese President Xi Jinping in Beijing on February 6. Right: US President Donald Trump in Washington on April 8. [AFP]

“A pro-China stance doesn’t necessarily have to work against Korea in trade negotiations with the United States — in fact, it could potentially strengthen Korea’s bargaining power,” said Sung-hyun Henry Kim, an economics professor at Sungkyunkwan University.

“However, given that President Trump often acts unpredictably outside conventional norms, leveraging ties with China as a negotiation tool could backfire and end up weakening Korea’s position instead,” the professor said.

While key national security and policy adviser positions have been filled, crucial appointments for leading the trade talks — such as the minister of trade, industry and energy and the minister of finance — have yet to be announced.

“Given that the decisions related to trade negotiations are made in a top-down manner, the [trade policy] direction is set in accordance with the administration’s broader philosophy encompassing diplomacy and a U.S.-related strategy,” said Heo Yoon, international studies professor at Sogang University who serves as chairman of the National Trade Policy Advisory Council under the Ministry of Trade, Industry and Energy.

Tiptoeing towards China, Russia

President Lee explicitly noted the need for closer ties with China and Russia during his campaign, although he refrained from making such definitive remarks after taking office.

“We need to maintain proper relations with countries like China and Russia— neighbors too close to be separated from,” he said during a campaign rally on May 25. “That way, we can sell our goods, have our singers perform in China and if necessary, reopen car factories in Russia. But if we lean too heavily to one side and turn the others into enemies, how could that be right?” Lee said.

Wi Sung-lac, newly named national security advisor, echoed the view of the president, although the former Democratic Party lawmaker who also served as an ambassador to Russia is considered relatively pro-U.S. in the liberal circle.

“In an effort to strengthen ties with the U.S. and Japan, [the former Yoon Suk Yeol administration] charged ahead without looking sideways or back — showing no consideration for other aspects,” Wi said in a 2024 interview with the Monthly JoongAng, an affiliate of the Korea JoongAng Daily.

"As a result, Korea’s relations with China, Russia and North Korea have hit rock bottom,” he said.

The shift in diplomatic tone could change the course of future talks concerning the increase of defense cost-sharing, an issue repeatedly brought up by Trump.

“Defense cost-sharing cannot be separated from economic and trade issues, but the government must remain alert and work to ease security concerns,” Heo continued. “In particular, it should take into account the shifting security landscape following the Russia-Ukraine war and the close alliance between North Korea and Russia."

BY PARK EUN-JEE, YOON SEUNG-JIN [[email protected]]