How China can win a ‘trade war’ between Japan and South Korea
- Chinese companies including Huawei are well-placed to capitalise as Seoul and Tokyo take aim at each other’s tech firms, analysts say
- Meanwhile, Beijing’s diplomats have another reason to smile
With Tokyo’s export restrictions on South Korean firms likely to prove mutually destructive, Chinese manufacturers could gain a competitive edge, according to analysts, while the souring of relations between two key US allies is likely to leave Beijing’s diplomats rubbing their hands.
The deepening row promises a headache not only for South Korean tech behemoths like Samsung and LG Display – both of which are heavily reliant on Japanese suppliers – but also for Japanese firms, which will need to find new customers and could see their own supply chains disrupted if relations continue to sour.
With the tit-for-tat measures compromising the tech industries of both countries, experts say Chinese manufacturers – and particularly the country’s nascent semiconductor industry – would be among the best placed to fill the void.