“Welcome. I am Director Wang Linming of China’s Ministry of Commerce.”
“Thank you for your hospitality. I am Kim Jiseong of Korea’s Ministry of Trade, Industry and Energy.”
The trade talks, held behind the scenes, proceeded in an unexpectedly warm atmosphere.
Director Wang was a former bureaucrat and a moderate, and fortunately, the Chen that Director Kim had been expecting was nowhere to be seen.
Did this mean the Chinese authorities were willing to talk?
“First, I would like to extend a heartfelt welcome to the Korean delegation for making this difficult trip. In truth, China and Korea share similar historical wounds. Our Victory Day event commemorates our overcoming of that humiliating history, and I hope political interpretations can be avoided. I hope the relationship between our two nations will grow even more amicable in the future.”
“Thank you for your warm words. Our president conveyed a similar message as well. Korea and China share similar pains, but we also share the task of overcoming that history. In that spirit, Korea is in the process of resolving its long-standing grievances with Japan one by one. We sincerely hope that Korea, China, and Japan will develop in a friendly manner.”
For the past twenty years, the landscape of Northeast Asia had always been as heated as the Romance of the Three Kingdoms.
When Japan paid visits to the shrine, Korea cursed it together with China; when China defended North Korea’s nuclear program, Korea cursed it together with Japan. Accordingly, domestic public opinion was split in two. There was a reason the standard questions at Korean confirmation hearings were, “Who is our main enemy?” and “Whose land is Dokdo?”
Unfortunately, whichever answer one chose, one got cursed for it.
Curse North Korea and you were a pro-Japanese collaborator; curse Japan and you were a commie.
And yet, in reality, it was YS who blocked Clinton’s bombing of Yongbyon and pushed for the first summit with North Korea. It was DJ who opened Korea to Japanese popular culture... so it truly was a mystery why factional logic had taken root like this.
For reference, the “Northeast Asia Balancer Theory,” which advocated befriending both sides, was first announced during the following Participatory Government, only to be beaten down by both the left and the right.
The people, then as now, hated both China and Japan.
“Then shall we talk a little about trade?”
“Gladly.”
Since both sides were in urgent positions, the trade agreement quickly reached a consensus.
“Lastly, the Korean government is currently reviewing visa-free entry for Chinese tourists. We hope to expand exchanges at the civilian level and strengthen friendship between our two countries.”
“That is an excellent idea. We also believe that civilian exchanges must expand if we are to resolve greater tasks.”
“It seems we are looking at the same picture after all. Then, Director Wang... how about using this opportunity for both our countries to open up culturally as well?”
But when all the issues without disagreement had been settled, a taut tension unlike before hung between the two sides.
Director Wang smiled bitterly and asked,
“Are you referring to the Hanhanryeong?”
“Yes. As you know very well, THAAD is an issue that has nothing to do with trade. Let us stop the confrontation now and support civilian exchange.”
Director Wang thought for a moment, then said,
“I’m sorry, but that will be difficult. I think I can persuade my superiors on the other matters, but it would be best for you to give up on cultural exchange.”
Unlike before, Director Wang’s answer was extremely firm. It meant this issue was impossible, to the point that he could not even bring it up with his superiors.
“I see.”
The negotiation team looked disappointed, but they did not look surprised.
They had expected it to some extent. They knew the Chinese authorities would never open up when it came to popular culture.
In truth, there was no point in arguing cause and effect at this stage, but China was largely to blame for the recent trend of protectionism. If one were to assign shares, it would be about seventy percent.
They broke the rules first.
Under WTO norms, the international community had agreed that governments would not intervene in market order, but China diligently helped its own companies. Chinese firms backed by the authorities killed off competitors through fierce low-price offensives and encroached, one by one, on the industries that would feed the next generation.
And they did not merely provide support; they also locked their gates tight.
China was especially persistent in blocking America’s Big Tech companies, cutting off Google and every other search engine while pushing its own IT firms.
In particular, they were pathologically wary of soft power. They censored romance dramas that had absolutely nothing to do with politics, idol culture, and even pretty-looking men(?).
Communism was, by nature, a political system that could not coexist with freedom, and soft power was an extremely dangerous weapon capable of collapsing such a state system.
Because China intervened in market order and censored soft power like this, Obama gave up the pro-China stance that had continued since Nixon and turned anti-China.
But what meaning did that have now?
If China had done something so wrong, then America should have come up with some grand strategy worthy of America... yet at present, the United States was busy throwing its weight around at its allies.
Did it truly not exist? A high-level diplomatic strategy that only America could devise, one that would unite the free world, isolate China, and destroy China’s greatest weapon—its labor-cost competitiveness? How on earth did a country with a per capita income of seventy thousand dollars intend to revive manufacturing? With that money, one could hire fourteen Vietnamese workers...
“...”
Damn it, we had to wait.
If my memory was correct, Michelle Obama would step forward in the next presidential election and resolve America’s chaos, but it took quite a long time to correct the American stance once it had gone off track.
Until then, we too had to grit our teeth and pave the road.
“Team Leader Lee. Why don’t you handle the rest?”
As I held my breath, Director Kim passed the ball to me.
“Good day, Director Wang. I am Team Leader Lee Sejun of Korea’s NPS.”
“Ah, I was wondering why someone so young was here. So you’re with the NPS.”
“I would like to make a proposal regarding investment.”
“Investment... haha. Talk of money is always welcome. What is your proposal?”
The pension fund’s assets under management were among the largest even compared to sovereign wealth funds, and thanks to that, I received excessive courtesy from him.
“This is the investment package for China that our NPS has in mind. Please review it.”
As he looked over the documents, his face soon stiffened.
“Is it not to your liking?”
“No... it’s too good. It’s so good that I’m having trouble answering.”
“Then—”
“However, I am not fool enough to accept a Trojan horse so carelessly. Why are you proposing a ten-trillion-won investment package to our Chinese companies?”
Leaving his wary gaze behind, I spoke calmly.
“What special reason would an investor have for making an investment? We see prospects.”
“What?”
“There may be ups and downs, but the global community will ultimately uphold its carbon reduction goals. Accordingly, China’s renewable energy business seems likely to stand out even more going forward. We would like to provide this level of investment funding to various renewable energy companies, including solar power firms.”
“...”
“And this ten trillion does not consist solely of investment funds. At present, Korea’s renewable energy share remains in the ten-percent range, but we plan to raise it to fifty percent within the next twenty years. Just like China now.”
When Director Wang turned his head, Director Kim from the Ministry of Trade, Industry and Energy nodded beside him.
It meant this was the government’s position.
“Accordingly, we will need a great deal of equipment and raw materials, and we are thinking of giving priority to Chinese companies. Chinese firms possess advanced technological capabilities in the renewable energy field, so we believe this will benefit both our countries.”
It was an offer that would make the Chinese authorities salivate, but Director Wang’s expression was not bright.
“Thank you for your words. Then tell me what you want.”
“We would like the Chinese authorities to open the market in a corresponding manner.”
“What...?”
“The automobile market.”
The automobile tariffs between Korea and China were complicated.
That was because automobiles were broadly divided into electric vehicles and internal combustion vehicles, and even within those categories, parts tariffs were imposed separately depending on which country’s parts had been used.
Still, generally speaking, Korean cars suffered from high tariffs of twenty-five percent.
“You want us to lower them?”
“Yes. I understand that BYD’s sales in Korea began in earnest this year. As far as I know, the tariff imposed in Korea is about eight percent, and headquarters has decided to shoulder that itself?”
“Surely you are not going to take issue with that? With a company bearing the cost on its own?”
“We are not fools either. We are well aware that the driving force allowing a company to bear it on its own is the R&D support and tax breaks granted by the Chinese authorities.”
“Look here.”
“I will say it again: I am not saying this to make an issue of it. In the electric vehicle market, Korea and China must overcome the high wall known as Tesla. Let us compete on quality through each other’s technological capabilities, not through external factors such as tariffs.”
Bang!
He struck the desk. No matter how much of a moderate he was, he too was in a position where he had no choice but to represent China.
“The more I listen, the stranger this sounds. Honestly, looking at the trade agreements we have discussed so far, how are they benefits to us?”
“...”
“I’m no fool either. This visa-free entry you’re allowing our tourists—isn’t it to revive Korea’s domestic market? Do you think we don’t know the closure rate among Korea’s self-employed? The renewable energy sector is the same. Look anywhere in the global market, and you won’t find anyone who can supply more cheaply than us.”
“...”
“If you examine each item, they are all things the Korean government needs anyway, and that is why you intend to do them. So why are you making unreasonable demands of our government while doing what is only natural?”
I set down my pen.
“That is not natural.”
“What?”
“For companies to shoulder tariffs while the government pays subsidies to those companies is clear market intervention. Do you think our government is standing by because we don’t know that?”
“So, are you saying you will raise tariffs on automobiles now? Since you’ve been hit with twenty-five-percent tariffs by the United States, losing the sales channel to China as well would put you in a difficult position.”
“We have no intention of doing so, but if that were to happen, wouldn’t Chinese companies be in even greater trouble?”
I stared straight at him.
“Director Wang. Just as you know our situation well, we also know China’s situation well.”
“What are you...”
“I understand that Chinese finished vehicles have been hit with forty-five-percent tariffs in Europe since last year, and this time steel has been hit with tariffs as well. Of course, it hurts that Korea was hit with twenty-five-percent tariffs by the United States, but China was hit with one hundred percent, was it not?”
“...”
“Fortunately, Europe is not our enemy. Even if Europe harms us, it will likely only be shrapnel created while aiming at China.”
Many experts said the same.
Protectionism was not desirable, but in any case, most of it was aimed at China. We would not be able to avoid damage either, but our situation would still be better than China’s, which was surrounded by enemies on all sides.
I handed the documents to him as he glared at me in silence.
“You already have enemies on every side. Why do you intend to make an enemy of Korea as well?”
“...”
“It is fine if you do not officially lower tariffs. Please open even a detour export route, such as through Hong Kong.”