© Reuters. Chinese Minister of Commerce Wang Wentao speaks at a press conference in Beijing, China, March 2, 2023. REUTERS/Florence Lu/File Photo
BEIJING (Reuters) – China and South Korea agreed to enhance dialogue and cooperation in the semiconductor industry supply chains, China’s commerce minister said, amid broader global concerns over chip supplies, sanctions and national security.
Wang Wentao met with South Korean Trade Minister Ahn Duk-gyun on the sidelines of the Asia-Pacific Economic Cooperation (APEC) conference in Detroit, which concluded on Friday.
They exchanged views on maintaining the stability of the industrial supply chain and promoting cooperation in bilateral, regional and multilateral fields, according to a statement issued by the Chinese Ministry of Commerce on Saturday.
Wang also said that China is willing to work with South Korea to deepen trade relations and investment cooperation.
However, a South Korean statement at the same meeting did not mention chips, instead saying that the country’s commerce minister asked China for stable supplies of key raw materials, and demanded a predictable business environment for South Korean companies in China.
“The South Korean side has expressed that there is a need for communication between officials at the working level in all industries,” not just semiconductors, a source familiar with the matter told Reuters. The source declined to be identified because they are not authorized to speak to the media. South Korea is in the crosshairs of a tit-for-tat dispute between the United States and China over semiconductors.
China’s cyber regulator said last week that Micron (NASDAQ:) had failed a review of its network security and that it would block major infrastructure operators from buying from the company. The US has pressured countries to limit China’s access to advanced chips, citing a range of reasons including national security.
About 40% of South Korea’s chip exports go to China, according to Commerce Ministry data, while US technology and equipment are essential for South Korean chipmakers Samsung Electronics (OTC:) and SK Hynix.