South Korea’s trade with China has shifted from a surplus to a deficit, drawing attention from various parties. According to the Chinese General Administration of Customs, in the first quarter of this year, South Korea’s exports to China were $38.2 billion, down 28.2% from the same period last year, the largest decline among its major trading partners. The report cites a Bank of Korea (BOK) report, which states that the positive effects of reopening of China’s economy are limited, and the pace of domestic demand recovery has not accelerated, particularly for durable goods such as mobile phones and cars, which have impacted South Korea’s exports.

South Korea remained the second-largest trading partner in China’s import trade for the entire year of 2022. However, in the first quarter of this year, South Korea dropped to fifth place in terms of import trade, following the United States, Taiwan, Australia, and Japan. At the same time, South Korea’s imports from China in the first quarter of this year also fell by 7.1 percent compared to the same period last year.

The BOK report suggests that South Korea’s significant decline in exports to China is largely due to the slump in semiconductor exports. Due to the global decline in semiconductor demand and a sharp drop in memory chips prices, South Korea’s overall semiconductor exports in the first quarter of this year fell by 40 percent compared to the same period last year. In particular to China, South Korea’s semiconductor exports saw a decline of 31.7 percent in the fourth quarter of 2022 and 44.5 percent in the first quarter of this year.

Source: Central News Agency (Taiwan), April 30, 2023
https://www.cna.com.tw/news/acn/202304300200.aspx

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that Australian Prime Minister Albanese released the final assessment of the Defense Report in the House of Parliament . In November last year, the Australian government decided to conduct a comprehensive evaluation of the  defense capabilities of the Australian military. The final results will be summarized into a new strategy that will help strengthen the national military-industrial complex and ensure that the military has the necessary defensive resources. The national defense strategy that once focused on territorial defense can no longer satisfy Australia’s ambitions. Looking at China from a distance, “Australia must deter potential enemies before they reach the coastline, whether it is at sea, in the air or on the Internet.” According to Australian Defense Minister Richard Marles, this is the first time in 35 years that Australia has redefined the mission of its military. The Defense Report identified the US-UK-Australia Trilateral Security Partnership (AUKUS) as a key priority which aims to help Australia acquire nuclear-powered submarines to strengthen its security and military deterrence in the Indo-Pacific region. The Report also laid out a large-scale reform of the Ministry of Defense and related agencies. It will be carried out in order to  plan the development of the military-industrial complex more accurately and systematically. Another priority is to increase long-range precision strike capabilities. The Australian Army will be the first to have missiles with a maximum range of 300 kilometers. Later it will reach the range of more than 500 kilometers through acquiring precision-guided missiles. The current Army missile range is only 40 kilometers. Australia will also strengthen cooperation with Japan, India and other Pacific and Southeast Asian countries. The Report mentioned China nine times, although the final public version did not list China as a direct military threat to Australia. The Report repeatedly cited China’s military spending and military actions as one of the reasons for Australia’s defense reform.

Source: Sina, April 25, 2023
https://news.sina.com.cn/c/2023-04-25/doc-imyrpwqv4527208.shtml

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, according to people familiar with the matter, Italian officials have hinted in private meetings with Taiwanese officials that they may be willing to withdraw from China’s Belt and Road program in order to strengthen semiconductor cooperation with Taiwan. Officials from the Italian Ministry of Industry recently discussed plans on semiconductor production and exports with Taiwanese officials in Taipei. Relevant decisions will have to be made by Prime Minister Giorgia Meloni, but she has not made her final position public yet. Italy is the only member of the G7 countries participating in China’s Belt and Road Initiative. Although the participation agreement has had little practical impact ever since it was signed by then-Prime Minister Giuseppe Conte in early 2019, it is highly symbolic for Beijing amid tensions between China and the United States and its Western allies. The deal will automatically renew in 2024 unless Italy chooses to abandon it. A spokesperson for the Italian Ministry of Industry declined to comment on the above news. According to Taiwan media reports, Taiwan will open its second representative office in Italy in Milan this coming summer.

Source: Lianhe Zaobao, April 20, 2023
https://www.zaobao.com.sg/realtime/china/story20230420-1385160