[COLUMN] Face 'strange China' and get bolder

By 임장원 Posted : September 18, 2017, 16:40 Updated : September 18, 2017, 16:40

[Xinhua News]



(This article was contributed by Kim Sang-chul, former supervisor of KOTRA in Beijing / Shanghai.)

China's retaliation over a Terminal High Altitude Area Defense (THAAD) system is becoming one of the biggest negative factors affecting our economy. Moreover, it's almost impossible to predict how long the situation will last. Retaliatory measures seem to have come from China's disbelief in South Korea and its confidence that the Chinese economy can go well without South Korea's cooperation. China is also trying to tame South Korea by setting a definite precedent that there will be a great damage if it angers China. 

Relations are as bad as they ever been, and it is not easy to recover balance if understanding or care about the other part collapses.  If we deploy tactical nuclear weapons, China may sever diplomatic relations with us. North Korea 's nuclear armament is becoming a reality, and the deployment of tactical nuclear weapons in South Korea and Japan is already on the timetable. The more we cling to China, the more we will be in a difficult situation. It is necessary to work out a quick exit strategy and at least to form a concerted public opinion. We should think about the worst- case scenario in economic relations with China. The more we are bolder, the more alternatives we have.

Many Korean companies are in trouble because of Chinese retaliation. However, it is hard to agree to attribute business failure entirely to THAAD. It is clear that Korean companies that have responded complacently to changes in China and its competitive structure are responsible. THAAD has only fostered their failure more rapidly. 

Many South Korean companies have been staying in China, but now they are relocating to Southeast Asia. Deep in its mind, it's not uncomfortable for China to go ahead with reprisals. Damage to Korean companies is getting bigger, but as time goes by, Chinese enterprises or workers are becoming the victims, too.

We have to overcome it and stand up again. It is possible to rebuild our economy if we use Chinese retaliation as an opportunity for a turnaround. We need to reduce our dependence on China, diversify our outbound market and rebuild our inbound market. You should quickly get out of an illusion like 'China Dream'. Many Chinese experts and lecturers are hiding the trail at this time, although they had misguided companies and individuals with the unilateral logic that China is a blue ocean forever. If you are only looking at China, you will be easily caught up in such an illusion. But when we approach the world in a broad and balanced way, we will recognize how much we have been obsessed. Everyone is always in danger of self-centered thinking. Over the decades since the 1980s, we have tried hard to overcome Japan. Reduced dependence on Japan has been the slogan of our economy. In fact, this strategy has had more than half of its success, and we have been able to stand alone in overseas markets. When we look at Japan as an opponent, we have been ignorant of the fact that we are the object of hatred.

China no longer feels something wanting from Korea. There is much more to China than we do. Chinese companies are growing fast to reduce their reliance on Korean technology. For China, it is not a great pleasure to see Korean companies expanding their businesses at a time when China is moving to a manufacturing powerhouse. Retaliations get more blatant and prolonged due to its confidence that China has almost caught up with Korea in almost all but a few areas. The more we feel uneasy, the greater the effect of their retaliation.

We should be more cool-headed than ever. The government must admit 'strange China'. Companies should work out a new strategy in China. And we have to say something about China. Any indiscriminate or irresponsible act like the destruction of joint venture contracts or reexamination of the origin should be strongly condemned. A WTO complaint should be filed against unfair trade practices. The business community should respond in the aspect that politics and economy are separate.  Somewhat encouraging is the increasing threat of North Korea's nuclear ambitions, and there are growing concerns among Chinese highbrow and political elders over the excessive conflict with South Korea. Some Chinese companies are seeing the situation as a turning point in corporate restructuring and the establishment of new business relations.

The more you calm down, the sooner the cloud falls and the new opportunity comes. Instead of 'familiar China', which is not there anymore, we have to prepare steadily for about with 'strange China'.

 
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