A new chapter in economic partnership: Charting the future of China-ROK trade and innovation

President of the Republic of Korea (ROK), Lee Jae Myung, concluded a significant state visit to China on Wednesday. This visit, his first to China since taking office, marks a pivotal moment in advancing the two countries' strategic partnership, with a clear and substantive focus on deepening economic and trade collaboration.

A foundation of resilience and interdependence

The bedrock of the bilateral relationship is an economic partnership of exceptional resilience and scale. In 2024, two-way trade reached a substantial $328.08 billion, a figure that underscores a staggering growth of over 60-fold since diplomatic relations were established in 1992. China has been the ROK's largest trading partner for 21 consecutive years, while the ROK stands as China's second-largest trading partner. This enduring linkage is not merely statistical but is reinforced by deep, structural integration.

Major ROK conglomerates exemplify this critical interdependence. In 2024, Samsung Group's exports to China surged approximately 54 percent year on year to about $45 billion, solidifying China as its largest global market – a key buffer against global competitive pressures. Similarly, SK Group maintains extensive partnerships with Chinese firms in new energy materials and batteries, Hyundai Motor is strategically advancing in China's new energy vehicle sector, and LG Group is actively exploring cooperation in display technology and electronics. These partnerships transcend simple trade, representing deeply woven supply chain alliances.

Strategic alignment for high-quality growth

The visit strategically aligned national development blueprints to unlock future growth. Lee's engagement in Shanghai with founders of Chinese AI startups, accompanied by a delegation of over 200 ROK business leaders, highlighted a shared priority for innovation-driven collaboration.

China's roadmap for high-quality growth, as outlined in the proposals for the 15th Five-Year Plan (2026-2030), presents concrete opportunities for synergy. The two economies, with their complementary strengths, are positioned to strengthen policy coordination. Moving beyond traditional sectors, cooperation in artificial intelligence, green industries, biopharmaceuticals, and the silver economy holds vast potential. Such collaboration is crucial for stabilizing regional industrial and supply networks amidst ongoing global strains, transforming challenges into shared opportunities for upgrading.

Navigating complexity with a focus on complementarity

While competition has intensified in some mature industries like automobiles, petrochemicals, and shipbuilding – a natural consequence of China's industrial upgrading – the core of the economic relationship remains fundamentally complementary. This is most evident in the highly interdependent supply chains for semiconductors and batteries, and the intricate, diversified division of labor in electronics and machinery. The overall economic architecture is defined more by mutual reinforcement than rivalry.

Institutionalizing future-oriented cooperation

The outcomes of the visit provide a tangible framework for the path forward. Following their talks, leaders of the two countries witnessed the signing of 15 cooperation documents, with a significant focus on areas directly fueling economic advancement: scientific and technological innovation, ecological environment, transportation, and economic and trade cooperation. These agreements institutionalize the commitment to translate shared vision into concrete, high-value projects.

Lee's visit has powerfully reaffirmed that the China-ROK economic partnership is not only a legacy of immense past success but a dynamic framework for future prosperity. By leveraging deep supply chain integration, aligning strategic development plans, and institutionalizing cooperation in next-generation industries, the two nations are decisively writing a new chapter – one defined by resilient growth, innovation, and shared economic destiny.