The impact of the US-China trade war on South Korea’s export to China

Bae, Hongjun (2024) The impact of the US-China trade war on South Korea’s export to China. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

The US-China trade war caused uncertainty and negative effects on the global economy, including slowdown in investment and consumer spending. South Korea was bound to take a significant hit, shown through how US sanctions on Chinese imports had a negative impact on South Korea's trade. This prompted South Korea to seek a corresponding response, which leads to this research. It discusses how the US-China trade war impacted South Korea’s exports to China and what actions South Korea can take or have taken to respond to the effects of the US-China trade war. This research uses neoliberalism, along with the concepts of economic cooperation, economic interdependence, and globalization. This research method utilizes a qualitative approach, descriptive research method, secondary data collection technique, and analytic comparison data analysis technique to answer the research questions. The results show that the US-China trade war has led to substantial economic impact on South Korea, specifically the decrease in intermediate goods exports to China. To facilitate economic recovery, South Korea has diversified its export items, explored, and invested in new markets, and shifted its export focus from China and the US to ASEAN countries. / Perang dagang AS-Tiongkok menyebabkan ketidakpastian dan dampak negatif pada ekonomi global, seperti melambatnya investasi dan pengeluaran konsumen, dan perdagangan Korea Selatan pasti akan mengalami dampak yang signifikan. Sanksi AS terhadap perdagangan Tiongkok berdampak negatif pada perdagangan Korea Selatan, mendorong Korea Selatan untuk mencari tanggapan yang sepadan. Oleh karena itu, penelitian ini membahas bagaimana perang dagang AS-Tiongkok memengaruhi ekspor Korea Selatan ke Tiongkok dan tindakan apa yang dapat diambil Korea Selatan untuk merespons dampak perang dagang AS-Tiongkok. Skripsi ini menggunakan teori neoliberalisme beserta konsep kerjasama ekonomi, interdependensi, dan globalisasi. Metode penelitian menggunakan pendekatan kualitatif dan deskriptif. Dengan data sekunder sebagai sumbernya, penelitian ini menggunakan analisis perbandingan untuk menjawab pertanyaan penelitian. Hasilnya menunjukkan bahwa perang dagang AS-Tiongkok telah menyebabkan dampak ekonomi yang signifikan bagi Korea Selatan, khususnya penurunan ekspor barang intermediate ke Tiongkok. Untuk memfasilitasi pemulihan ekonomi, Korea Selatan mendiversifikasi barang ekspornya, mengeksplorasi dan berinvestasi di pasar baru, serta menggeser fokus ekspornya dari Tiongkok dan AS ke negara negara ASEAN.

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