Thursday, May 22, 2025
  • Login
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
No Result
View All Result

South Korea Might Suffer Amid Thickening U.S.-China Tension

D. Atika by D. Atika
2 years ago
in Finance News

Amid strengthening U.S.-led de-risking with China, analysis suggests that Korea, which is heavily dependent on de-risking between the U.S. and other Western members, and China, could suffer relatively significant damage.

According to the International Monetary Fund’s analysis of the regional economic outlook report using its own model on the 22nd, Korea’s GDP is estimated to shrink by nearly 4% in the so-called “friend-shoring” situation where OECD member countries and China reorganize their supply chains around alliances.

Friend-shoring assumes an environment in which OECD member countries and China strengthen non-tariff trade barriers to reduce their dependence on each other, but do not restrict trade with other countries.

In this case, China’s GDP is estimated to shrink by 6.8% in the long run. In addition, the global economy’s GDP decline was around 1.8%, and the GDP decline in the rest of the countries except China and OECD member countries was around 0.2%.

RelatedArticle

How Distrust in Banks is Hindering the Fintech Revolution

Profits of 5 Global Banks High Despite ECB Rate Cut

Global Cryptocurrency Tax Pt. 2

Cryptocurrency Advertisements Shut Out by Bing

Analysts say that Korea is less damaged than China at about 4%, but the damage is greater than that of other economies as it relies heavily on China.

In addition, Korea’s GDP decline rate is greater than that of China in a “reshoring” situation in which China and OECD member countries strengthen non-tariff trade barriers not only against the other party but also against all countries.

The reshoring situation assumes that OECD member countries’ dependence on foreign purchases is reduced by 3 percentage points through strengthening non-tariff trade barriers.

In this case, China’s GDP decreases by 6.9%, while Korea’s GDP decreases by about 10%. The GDP decline rate in Southeast Asia (excluding Indonesia) as well as Korea was relatively large at 9.1%. On the other hand, the U.S. GDP decline rate, which has a large domestic market, is estimated to be less than 4%.

This is because in the reshoring situation, not only is it highly related to China and OECD member countries, but also to open economy countries, where trade, such as exports, accounts for a higher proportion of GDP than domestic demand, is more damaging.

Currently, U.S.-led export controls on high-tech products such as semiconductors and secondary batteries are being implemented, and China is confronting export controls such as gallium, germanium, and recently graphite, and delisking is in full swing.

In addition, the situation of “friend-shoring” and “reshoring” assumed by the IMF report is currently ongoing, given that the U.S. is sucking not only reshoring of its own companies but also foreign companies into the U.S. mainland through the Inflation Reduction Act (IRA) and the Semiconductor Act (CHIPS Act).

Tags: chinaChina U.S.economyKoreaKorea ChinaSouth KoreaU.S. KoreaU.S.-China
D. Atika

D. Atika

Related Posts

How Distrust in Banks is Hindering the Fintech Revolution

role of fintech in transforming financial services, over-trading biggest mistake. distrust in banks hindering fintech
by oney
October 23, 2024

Introduction The fintech revolution promised to transform the financial industry, offering innovative solutions and improved access to financial services. However,...

Read more

Profits of 5 Global Banks High Despite ECB Rate Cut

central bank policy decisions, profits of global banks
by oney
October 22, 2024

Introduction Despite the recent rate cut by the European Central Bank (ECB), the profits of five major global banks are...

Read more

Global Cryptocurrency Tax Pt. 2

role of stablecoins in the crypto ecosystem, diversify your crypto portfolio, how to use a Forex economic calendar. Cryptocurrency Advertisement tax global
by oney
October 5, 2024

After the crypto tax system in South Korea, US. and UK. in the first part of this article, here are the taxes...

Read more

Cryptocurrency Advertisements Shut Out by Bing

role of stablecoins in the crypto ecosystem, diversify your crypto portfolio, how to use a Forex economic calendar. Cryptocurrency Advertisement tax global
by oney
October 3, 2024

Microsoft’s search engine platform, Bing, on January 25, 2019, said it had blocked more than 5 million cryptocurrency advertisements. Before...

Read more
Load More
Next Post

Tesla Stock Plunged 15% Over the Week

Trending Issues

  • Cristiano Ronaldo makes Coca-Cola losing millions businesses

    Cristiano Ronaldo and His 6 Successful Businesses

    0 shares
    Share 0 Tweet 0
  • Indonesian Local Pride Improves the Succesful Local Business

    0 shares
    Share 0 Tweet 0
  • 5 Facts in the Story of a Start-Up KDrama (Part 1)

    0 shares
    Share 0 Tweet 0
  • Quick Broker Review: XM Broker

    0 shares
    Share 0 Tweet 0
  • 5 K-Dramas to Watch for Some Money Lessons

    0 shares
    Share 0 Tweet 0

Get the latest market news and trading tips to your inbox daily, subscribe now !

Topic

  • Asia News
  • Asia Trade
  • Bonus+Promotions
  • Broker News
  • Business News
  • Cryptocurrency
  • Currency Analysis
  • Finance News
  • Forex & Market
  • Forex Tips
  • Hot News
  • Investment Tips
  • Learn to Trade
  • Market Analysis
  • Politics Issue
  • Reviews
  • Social Media
  • Stock Analysis
  • Stock Market
  • Stock Trading Tips
  • Technical Analysis
  • Tips
  • trading strategy
Go Trading Asia

Go Trading Asia covers the latest in Business and Economic News and Market Analysis, with the aim of Providing Readers with the knowledge and tools to make better informed financial decisions.

  • Contact us
  • Privacy Policy
  • Disclaimer

© 2021 Go Trading Asia.

No Result
View All Result
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us

© 2021 Go Trading Asia.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In