Geo-Strategic Trend - 2. page

South Korea is facing growing criticism over the industrial impact of its free trade agreement (FTA) with China as Chinese manufacturing has rapidly upgraded. The former complementary relationship—South Korea supplying components while China handled assembly and processing—is shifting as Chinese intermediate goods increasingly penetrate the Korean market. Korean media have warned that lower-priced Chinese products are putting pressure on domestic manufacturers, particularly in electronic components, auto parts, machinery, and consumer goods.

Park Seung-chan, director of the China Business Research Institute and a professor at Yongin University, wrote in January that more than 80 percent of South Korea’s exports to China had historically consisted of intermediate goods. As China’s manufacturing sector has advanced, Korean exports of materials, components, and equipment to China have declined, while Chinese intermediate goods have gained market share in South Korea.

Korean businesses are also concerned about China’s regulatory environment. As South Korea and China negotiate a second phase of the FTA covering services and investment, Korean media have noted that China today is substantially different from when the FTA took effect in 2015. While China promotes greater market opening, it has also strengthened economic-security regulations, including anti-espionage and data-security laws. Korean companies may still face administrative delays, distribution restrictions, and preferential treatment for Chinese state-owned enterprises.

South Korean lawmaker Choi Soo-jin described the FTA’s 10-year record as marked by “three consecutive years of trade deficits (from 2023 to 2025)” and damage to domestic manufacturing. The debate has increasingly shifted from the FTA’s tariff benefits to how South Korea can maintain domestic manufacturing competitiveness as China’s industrial capabilities expand.

Source: Creaders.net, September 27, 2026
https://news.creaders.net/world/2026/09/27/3052003.html

An investigation by the International Consortium of Investigative Journalists (ICIJ) and media organizations in 24 countries examined 4.8 million records from China’s Industrial and Commercial Bank of China (ICBC) covering 2005–2024. The records reportedly show that ICBC’s London operations provided financial services to high-risk clients, including sanctioned Russian and Belarusian businessmen, politically connected companies, and heavily indebted countries.

The investigation alleges that the branch sometimes acted on instructions from ICBC’s Beijing headquarters to support broader objectives of the Chinese Communist Party. It characterizes ICBC as functioning not only as a commercial bank but also as an important financial instrument supporting China’s overseas geopolitical and economic expansion.

During the Russia-Ukraine war, ICBC’s London branch reportedly explored ways to help Russian mining giant Nornickel obtain financing in renminbi to avoid dollar transactions. The investigation also found that, shortly after the U.S. Justice Department indicted Huawei in 2019 for allegedly violating U.S. sanctions on Iran and other offenses, ICBC London rapidly transferred $1.3 billion in Huawei funds to China. Although the transaction itself was not illegal, it was reportedly carried out without prior notification to ICBC’s financial-crime prevention department, triggering internal objections.

The investigation also identified compliance and lending concerns involving developing countries. Since 2014, courts and regulators in eight jurisdictions have reportedly imposed adverse rulings or penalties against ICBC and its overseas branches totaling at least $96 million. In Zambia, ICBC provided a $285 million loan to the state-owned power company ZESCO in 2011 and later sought repayment during the country’s sovereign debt crisis. Internal documents reportedly show that ICBC headquarters instructed London employees to transfer funds from ZESCO’s account to Beijing before completing required customer reviews.

The investigation reviewed roughly 200 additional loan agreements involving nearly 30 countries, with financing ranging from about $3 million to $400 million. Borrowers included government entities and companies involved in commodities, energy, and financial services. According to the investigation, ICBC’s overseas lending has helped Chinese state-owned enterprises secure foreign contracts and finance acquisitions of transportation, energy, and telecommunications infrastructure, while also providing loans to foreign governments as part of China’s economic diplomacy.

Source: The Epoch Times, September 18, 2026
https://www.epochtimes.com/gb/26/9/17/n14851435.htm