Xinhua: Wang Yi says China and South Korea should jointly oppose "decoupling and breaking chains" to maintain the stability and smooth flow of global production and supply chains

Xinhua: Wang Yi says China and South Korea should jointly oppose "decoupling and breaking chains" to maintain the stability and smooth flow of global production and supply chains

South Korea is actively pursuing a shipbuilding partnership with the United States to secure a last-minute agreement and avoid a 25% tariff rate. The proposal, dubbed "Make American Shipbuilding Great Again," is a multibillion-dollar project aimed at strengthening bilateral cooperation in the shipbuilding sector [1].

The South Korean presidential office confirmed the U.S. side's strong interest in the shipbuilding sector and the agreement to work together on mutually acceptable terms that include shipbuilding cooperation [1]. However, details of the proposal remain unclear, and the Industry Ministry has declined to comment on the specifics.

South Korea is under pressure to reach a trade deal with the U.S. by August 1, as neighboring Japan's agreement with Washington set a higher bar for the Lee Jae Myung government. Seoul is keen to lower the U.S.'s "reciprocal" 25% tariff to 15% or below, as Tokyo agreed with Washington to cut the rate to that level last week. However, the U.S. has postponed high-level trade meetings with South Korea, casting a shadow over the outlook for success [2].

The proposal comes amidst ongoing trade tensions between the U.S. and China, which have had significant implications for global value chains (GVCs). The trade war between the U.S. and China has involved all stakeholders deeply involved in GVCs, impacting countries and regions closely linked to these two powers [3]. The trade war has brought additional uncertainty and risk to GVCs, potentially leading to long-term, large-scale, and far-reaching consequences.

In a recent statement, Chinese Foreign Minister Wang Yi emphasized the importance of China and South Korea jointly opposing "decoupling and breaking chains" to maintain the stability and smooth flow of global production and supply chains [4]. This underscores the broader geopolitical context in which South Korea's proposal is being made.

References:
[1] https://www.japantimes.co.jp/business/2025/07/28/economy/south-korea-shipbuilding-us-trade/
[2] https://asia.nikkei.com/Economy/Trade-war/Trump-tariffs/South-Korea-under-pressure-to-strike-US-tariff-agreement
[3] https://www.sciencedirect.com/science/article/pii/S0313592625003121
[4] Xinhua: Wang Yi says China and South Korea should jointly oppose "decoupling and breaking chains" to maintain the stability and smooth flow of global production and supply chains