China's manufacturing dominance could grow with U.S. tariff war, posing risks to Korea: BOK
Published: 28 Nov. 2025, 13:40
![U.S. President Donald Trump and Chinese President Xi Jinping talk as they leave after a bilateral meeting at Gimhae International Airport, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Busan on Oct. 30. [REUTERS/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/11/28/467a5ebd-f3c9-4c1e-b4d1-ecf4f53f068e.jpg)
U.S. President Donald Trump and Chinese President Xi Jinping talk as they leave after a bilateral meeting at Gimhae International Airport, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Busan on Oct. 30. [REUTERS/YONHAP]
China's manufacturing sector could further strengthen its global dominance amid trade tension with the United States, potentially posing a risk to Korea and other manufacturing-focused countries, Korea's central bank said Friday.
"Even if the United States eases its tariff policies, the U.S.-China competition is likely to persist, and China is expected to continue diversifying its export destinations," the Bank of Korea (BOK) said in a report.
"Such diversification is projected to cushion the short-term decline in exports to the United States and, in the longer term, further expand the presence of China-made products in emerging and other non-U.S. markets," it added.
In the second and third quarters, China's exports to the United States plunged 26 percent, while its shipments to Europe, the Association of Southeast Asian Nations and Africa rose 12 percent over the same period.
Overall, China's export growth based on customs data has been accelerating this year, rising from a 5.6 percent on-year increase in the first quarter to a 6.1 percent rise in the second quarter and further to 6.5 percent in the third quarter, the BOK said.
"If China's strong manufacturing competitiveness is combined with AI and other advanced technologies, its role as the world's factory could become even more entrenched. In the process, countries with manufacturing-centered economies, including Korea, Germany and Japan, could face mounting challenges," the report read.
Yonhap
with the Korea JoongAng Daily
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