South Korea has just played a high-stakes game.
It slapped anti-dumping duties of 27.91% to 38.02% on Chinese steel—a rate so steep it borders on highway robbery. The justification? Alleging that China’s “cheap steel” harms South Korea’s shipbuilding and construction industries. Sound familiar? It’s the same tune the U.S. sang years ago when accusing China of steel dumping.
Let’s dissect this. South Korea, a country smaller than a postage stamp, ranks second globally in shipbuilding, trailing only China. In recent years, its imports of Chinese thick steel plates have surged: 470,000 tons, 810,000 tons, 1.3 million tons, 1.38 million tons—accounting for 17% of South Korea’s total imports. Simply put, South Korea’s shipyards rely heavily on Chinese steel.
Now, it’s biting the hand that feeds it.
Why?
Likely U.S. pressure. Donald Trump’s “America First” rhetoric has turned allies into targets. Squeezed between China and the U.S., South Korea faces tariffs on its steel and autos from Washington. To curry favor, it’s throwing China under the bus, hoping for exemptions.
The plan sounds clever—until it backfires.
China isn’t bluffing.
As the world’s second-largest economy and top steel producer, it holds strategic cards: rare earths, gallium, germanium, and antimony—materials critical to South Korea’s electronics and semiconductor sectors. If China restricts exports, giants like Samsung and LG would face chaos.
This is like trading a golden rice bowl for a clay one. What’s the point?
Some argue South Korea is gambling that China won’t retaliate harshly, mirroring the muted response to the THAAD incident. That’s naive. Today, amid intense U.S.-China rivalry, Beijing’s resolve to defend its interests is unshakable.
South Korea’s move is akin to “a mouse tweaking an elephant’s trunk”—a reckless gamble. It assumes the elephant (China) is too preoccupied to notice. But one misstep, and the mouse gets crushed.
This is a clash of industrial chains and national strength. China’s complete industrial ecosystem—from mining to shipbuilding—gives it an edge. South Korea, with its narrow industrial base and high external dependency, resembles a shallow-rooted tree swaying in the wind.
South Korea boasts of being a “global powerhouse,” yet lacks land, resources, and resilient supply chains. Its vaunted semiconductor industry? Just a link in a global chain that China is rapidly overtaking.
Truth is, South Korea walks a tightrope. On one side, the U.S.; on the other, China. One misstep, and it plummets.
Instead of teetering, South Korea should choose solid ground: cooperation with China for mutual gain. Picking sides will only leave it worse off.
It’s a mantis trying to stop a chariot—utterly overestimating its strength.