Why is China so concerned at the prospect of South Korea joining a US-led chip alliance?
- The so-called Chip 4 Alliance is seen by Beijing as Washington’s plot to exclude China from semiconductor value chains
- China is concerned that a decision by South Korea to join US-initiated chip alliance would harm its semiconductor self-sufficiency drive
A US-initiated chip alliance with Asian economies, especially South Korea, is facing criticism from China, which is concerned about losing critical supplies as it seeks to build greater self-sufficiency in semiconductors, according to analysts and media reports.
The so-called Chip 4 Alliance, a partnership envisioned by the US to include South Korea, Japan and Taiwan, is seen by Beijing as Washington’s plot to exclude China from semiconductor value chains, with both China’s foreign ministry and commerce ministry expressing opposition to the idea.
China is particularly sensitive about the position of South Korea as the country is key to Beijing’s semiconductor self-sufficiency drive. Samsung Electronics and SK Hynix both have plants in China, helping the country to integrate into cross-border value chains.
Amid Washington’s efforts to publicly press Seoul into joining the chip coalition, China has stepped up its rhetoric against such a move.
“South Korea should not blindly follow the US and the West in making its China policy”, according to an editorial published this week by nationalist tabloid Global Times. It added that China should not be blamed if it takes “countermeasures against South Korea” if the country chooses to side with Washington.