US ally and China partner: how South Korea navigates between two powers

If the time comes, South Korea’s new consul general in Shanghai will not hesitate to get the shot. Kim Seung-ho, Seoul’s senior diplomat in the Chinese financial hub, said he had confidence in China’s coronavirus vaccines and would roll up his sleeve if both countries’ authorities decided to vaccinate the willing South Korean community in China. “I would be the first one in that line to get the shot,” he said in his first interview with Hong Kong media. Kim’s confidence reflects Seoul’s broader willingness to work with Beijing as South Korea navigates relations with its biggest trading partner – China – and its strategic ally, the United States. Kim, who took up his position in Shanghai late last year after a series of postings from France to Iran, said Seoul wanted to maintain ties with both countries and would only suffer if relations between the two powers went awry. “For [South] Korea and most small and medium countries, we need two pillars in order to keep standing up. These two pillars are China and America. So China and the US have the responsibility to stand still amicably,” he said. After the turmoil of the Trump administration, calmer waters could be on the horizon, with the White House seeking to reassure allies of American support. This included US Defence Secretary Lloyd Austin assuring his South Korean counterpart of the US “ironclad” commitment to defend its long-term ally through their joint defence work. In recent weeks, South Korean President Moon Jae-in has also promised a stronger alliance with the United States. US and Chinese foreign policy chiefs lay down markers for future But while the US was an ally, China was a partner, and both nations were essential for South Korea, Kim said. “We cannot [remain standing] if either of them fell down,” he said. Trade is central to South Korea’s relationship with China and talks have been under way for eight years for a trilateral free-trade agreement that would also involve Japan. But little progress has been made, with efforts undermined by a series of territorial and security disputes. Relations between China and South Korea were inflamed in 2017 when Seoul allowed the US military to install a Terminal High Altitude Area Defence, or THAAD, anti-missile system in the country to counter a strike from North Korea. But China saw it as infringing on its security. Kim said it was time for South Korea, China and Japan to unite to compete with other large economies including the US and the European Union in the “smart economy” era, and a free-trade deal would contribute to that end. “The three countries are top-notch economies in the world, especially in the new economy areas, [such as] science, technology, information, finance,” he said. “Europe and the US are also trying to get competitive edges in these areas. There is fierce competition. If China, Korea and Japan come together through a free-trade agreement, they will have a competitive edge over a scattered EU or US or any other countries.” Kim said one of the main roadblocks in reaching a deal to bring down tariff barriers was a lack of trust. Can a Biden-Moon unified front on North Korea work amid policy frictions? “The three countries are doubting each other whether their tariffs are lower than those of the other two countries,” he said. Some headway has been made at the regional level. Late last year, China, South Korea and Japan teamed up with Australia, New Zealand and the 10 members of the Association of Southeast Asian Nations to form the Regional Comprehensive Economic Partnership (RCEP). The RCEP will eliminate as much as 90 per cent of the tariffs on imports between its signatories and is considered the world’s largest trading bloc. Kim said he was optimistic that the three neighbours would reach their own deal. “The three countries have already accumulated negotiation experience in [free-trade agreements]. They have also concluded many similar agreements. China and [South] Korea have one already,” he said. In the meantime, South Korean companies in China needed to keep up with the rapid economic and technological changes in China, he said. “Maybe sooner or later China will be the No 1 economic power, and China’s technology is already the world’s top class. Whatever you are doing, you can’t do it well without engaging with China now. The reason foreign companies come and stay in China is to ‘make with China’,” he said. “So [South] Korean companies have to be very careful making the strategy to be abreast with China and work with China, otherwise other foreign companies will succeed in that task. And [South] Korean companies that fail to do so will be excluded from China.”