Business, balance and the future: ROK's sustainable path with China

Editor's note: Jessica Durdu, a special commentator on current affairs for CGTN, is a foreign affairs specialist and PhD candidate in international relations at China Foreign Affairs University. The article reflects the author's opinions and not necessarily the views of CGTN.

President of the Republic of Korea (ROK) Lee Jae Myung arrived in Beijing on Sunday for a four-day state visit to China from January 4 to 7. The fact that a large business delegation including ROK's most influential corporate leaders is accompanying Lee on his state visit to China is not a mere symbolic gesture; it reflects a structural reality of ROK's economy and a strategic understanding of where sustainable growth lies.

When figures, such as Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Eui-sun and LG Group Chairman Koo Kwang-mo, travel together with the head of state, it signals that diplomacy, industrial policy and long-term national competitiveness are deeply intertwined.

Seoul's adoption of a pragmatic and balanced diplomatic approach toward Beijing is, first and foremost, an economic reality. China has been ROK's largest trading partner since 2004, accounting for roughly one-quarter of ROK's total exports in recent years.

Even amid global supply-chain adjustments, according to China's General Administration of Customs, bilateral trade volume reached 298.9 billion U.S. dollars during the January-November period last year, underscoring the resilience of economic interdependence. For ROK's conglomerates operating in semiconductors, batteries, electric vehicles (EVs), petrochemicals and consumer electronics, China is not simply a market; it is a manufacturing hub, a technology partner and an increasingly sophisticated consumer base. Ignoring or politicizing this reality would undermine Seoul's own industrial foundations.

The composition of the current business delegation also reflects a forward-looking understanding of industrial transformation. Cooperation in semiconductors, batteries, EVs and advanced manufacturing is no longer about traditional trade; it is about shaping the next phase of global industrial standards. These sectors are capital-intensive, technologically complex and deeply embedded in cross-border ecosystems.

For instance, ROK's battery giants such as LG Energy Solution and SK On are closely linked to China's upstream materials supply, including cathodes, anodes and rare-earth processing. Rather than seeking abrupt decoupling, a pragmatic diplomatic stance allows Seoul to manage risks while preserving access to critical inputs and collaborative innovation.

Diplomatic facilitation measures, such as the reciprocal visa waiver programs for short stays between Beijing and Seoul, further reinforce the logic of pragmatism. These policies directly support business mobility, academic exchange, tourism and people-to-people connectivity.

Before the pandemic, nearly 10 million people traveled annually between the two countries. Restoring and institutionalizing such flows is essential for rebuilding trust and sustaining long-term cooperation. History shows that economic ties anchored in frequent human interaction are more stable and adaptable in times of uncertainty.

From a strategic perspective, ROK's balanced approach toward China does not imply alignment against any third party but reflects its traditional strength as a middle power capable of navigating complex geopolitical landscapes. Seoul's own development experience, transforming from an aid recipient to a global industrial leader, has taught its policymakers the value of strategic autonomy.

Maintaining constructive relations with China enhances ROK's diplomatic maneuverability. Recent examples illustrate the benefits of this approach. Despite external pressures and global disruptions, ROK's firms have continued to expand high-value operations in China. Samsung's semiconductor facilities in Xi'an remain among its most advanced memory production bases globally, accounting for a significant share of its NAND flash output.

The Hyundai Motor Group, after a period of restructuring, has reoriented its China strategy toward electric and smart vehicles, aligning with China's rapid electrification trend. These are long-term bets on shared industrial transformation of the whole region.

Moreover, China's own emphasis on high-quality development, green transition and technological upgrading aligns with ROK's strengths. Cooperation in EVs, hydrogen technologies, smart manufacturing and digital infrastructure offers win-win opportunities.

According to the International Energy Agency, China accounts for over 60 percent of global EV sales, making it an indispensable market for ROK's battery and auto component firms. Engaging pragmatically allows Seoul to participate in shaping standards, supply chains and innovation pathways rather than reacting from the sidelines.

At the societal level, balanced diplomacy also contributes to regional stability. Northeast Asia remains one of the world's most economically dynamic yet politically sensitive regions. Stable China-ROK relations reduce uncertainty, support regional growth and create space for multilateral cooperation in areas such as climate change, public health and disaster response.

Lee's emphasis on economic cooperation over ideological confrontation reflects an understanding that sustainable futures are built through predictability and mutual benefit. At a time when global governance faces fragmentation, ROK's pragmatic diplomacy enhances its international standing.

Acting as a bridge between major economies and emerging markets strengthens Seoul's soft power and policy autonomy. Business-led diplomacy, as seen in this delegation, complements state-level engagement by grounding foreign policy in real economic needs rather than abstract rivalry. It sends a message that sustainable prosperity is built through cooperation, rules-based engagement and mutual benefit.

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