In a year marked by economic turbulence, shifting alliances, and technological rivalry, the relationship between China and South Korea has emerged as a vital thread in the fabric of global commerce. The two East Asian neighbors, whose industries and supply chains are more intertwined than ever, are positioning their partnership as a bulwark against mounting trade tensions and protectionist headwinds sweeping across the world.
At the heart of this dynamic is a recent gathering held in Seoul on September 17-18, 2025, where more than 40 representatives from leading Chinese and South Korean companies came together to discuss the future of economic cooperation. The meeting, co-organized by the China International Council for the Promotion of Multinational Corporations and the Korea Enterprises Federation, focused on emerging sectors such as digital and green economies, artificial intelligence, and biotech—areas seen as critical for the next phase of global growth, according to China Daily.
Chinese Ambassador to South Korea Dai Bing set the tone for the event, emphasizing the deep economic symbiosis between the two countries. "The industrial and supply chains of China and South Korea are deeply intertwined," Dai said. "This mutually beneficial partnership has not only brought substantial benefit to the two peoples, but also made significant contributions to regional peace, stability, and prosperity." His remarks underscored the belief that cooperation, not confrontation, is the surest path to prosperity in an era of uncertainty.
The numbers tell a compelling story. Since the establishment of diplomatic relations 33 years ago, bilateral trade between China and South Korea has soared more than 60-fold, reaching a staggering $328 billion in 2024. Cumulative two-way direct investment has also surpassed $110 billion, according to the Chinese embassy. These figures are not just statistics—they represent millions of jobs, countless innovations, and a shared commitment to economic development that has withstood the test of time.
Financial cooperation has also deepened. Bank of China President Zhang Hui highlighted the significance of the currency swap agreement signed in 2008, which now stands at 400 billion yuan ($56 billion). "This greatly improved the convenience of cross-border trade and investment, while strengthening regional financial security," Zhang noted. He pledged that the bank would continue to leverage its global reach to foster policy alignment and business opportunities, aiming to build "a bridge of friendship" that enhances resilience and mutual benefit for businesses on both sides.
Ge Wei, vice-president of the China International Council for the Promotion of Multinational Corporations, argued that complementary cooperation between Chinese and South Korean industrial chains is not just beneficial—it is essential for the economic development of both nations. He called for in-depth discussions on supply chain collaboration, a sentiment echoed by South Korea's Deputy Trade Minister Park Jung-won. Park stressed that businesses should play a central role in enhancing supply chain cooperation, ensuring that both countries remain competitive and adaptable in a rapidly changing world.
But it’s not just about maintaining the status quo. Sohn Kyung-shik, chairman of South Korean conglomerate CJ Group and the Korea Enterprises Federation, urged both sides to deepen their collaboration in cutting-edge technologies. "Companies on both sides should deepen cooperation in technological innovation and emerging industries, including artificial intelligence and robotics," Sohn said. He expressed hope that such efforts would lead to greater supply chain stability, new market opportunities, and a shared momentum for future growth.
While China and South Korea are doubling down on cooperation, the broader geopolitical context remains fraught. On September 20, 2025, US President Donald Trump announced he would meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in Seoul, scheduled for October 31 to November 1. As reported by Euractiv, this will be the first meeting between the two leaders since 2019 and is widely seen as a gesture of appeasement after months of escalating trade hostilities.
The US-China trade war, reignited in April 2025, has seen both nations target each other’s economies with tariffs, restrictions, and outright bans. Only days before Trump’s announcement, US chipmaker Nvidia became the latest casualty, with China’s Cyberspace Administration imposing a new ban on its sought-after AI-enabling chips. These moves have rattled global markets and forced companies worldwide to rethink their supply chain strategies.
The upcoming Trump-Xi summit is expected to tackle a laundry list of contentious issues: the ongoing trade war, the fentanyl crisis—which Trump has linked to illegal Chinese shipments to the United States—Russia’s war in Ukraine, and the future of TikTok’s US operations. The fate of TikTok, in particular, has drawn intense scrutiny. According to The Wall Street Journal, a deal is in the works that would see US cloud provider Oracle, venture capital fund Andreessen Horowitz, and private equity firm Silver Lake Management take part in a new ownership structure. The proposed arrangement would create a US-based board with seven seats, six of which would be held by Americans, as confirmed by White House press secretary Karoline Leavitt on Fox News. She indicated that a deal could be signed "in the coming days."
Meanwhile, the geopolitical chessboard continues to shift. Following Trump’s call for US allies to punish countries aiding Russian President Vladimir Putin in evading sanctions over the Ukraine war, the European Union is preparing to target a dozen Chinese firms in its next sanctions package. This move adds another layer of complexity to China’s international economic relationships and underscores the interconnectedness of trade, security, and diplomacy in today’s world.
Against this backdrop, the emphasis on China-South Korea cooperation takes on added significance. As protectionism rises and global supply chains become battlegrounds for influence, the ability of these two nations to work together could serve as a stabilizing force. Their shared commitment to free trade and globalization, as highlighted by Dai Bing, stands in contrast to the more confrontational approaches seen elsewhere.
It’s clear that the stakes are high—not just for China and South Korea, but for the global economy as a whole. The decisions made in boardrooms and government offices in Seoul and Beijing will reverberate far beyond East Asia, shaping the contours of international commerce for years to come. As the world watches the upcoming APEC summit and the evolving US-China dynamic, the enduring partnership between China and South Korea offers a glimmer of hope for those who believe in the power of cooperation over conflict.
For now, business leaders and policymakers on both sides remain focused on the future, betting that innovation, dialogue, and shared interests will carry the day. In a world rife with uncertainty, their wager on collaboration could make all the difference.