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Tomorrow (24th) is the 30th anniversary of the establishment of diplomatic ties between Korea and China.

China is very important as it is our largest trading partner, but our concerns are growing as the US wants to draw a line with China.



Reporter Jang Hoon-kyung pointed it out.



<Reporter>



The Ioniq 5 sold more than 13,000 units in the first half of this year, being evaluated as a cost-effective car in the United States.



However, it was an emergency because it failed to receive a US government subsidy of $7,500 or about 10 million won.



It is because of the inflation reduction law that subsidies will be given only to electric vehicles assembled in the United States, and no subsidies will be given if the amount of Chinese-made parts and minerals in electric vehicle batteries exceeds a certain percentage.



Korea was hit directly by the idea of ​​excluding China and nurturing its own industries.



[Lee Hang-koo / Research Fellow, Automobile Research Institute: In the long run, of course, there will be battery makers in the United States.

It turns into competition between Europe and the US, including Korea, China, and Japan.] The



same goes for semiconductors.



U.S. semiconductor and science laws prohibit U.S. government-backed semiconductor companies from investing in China for 10 years.



It's a big blow for our company with factories in China.



The Biden administration is drawing a line with China, drawing South Korea into the Indo-Pacific Economic Framework and the semiconductor supply chain cooperation dialogue, the so-called Chip 4.



China is blatantly in control.



[Zhao Lijian / Spokesperson of the Ministry of Foreign Affairs of China: (Korea) hopes to do more work that contributes to Korea-China relations, global industry and stability.]



The US-China competition is intensifying to the extent that the word “New Cold War” is being spoken.



It is pointed out that reducing the high dependence on China and diversifying the market is an urgent priority.



[Seo Jin-kyo/Senior Research Fellow, Institute for Foreign Economic Policy: Because it is important to lower our dependence on China in the long term…

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For the sake of the United States (not for the sake of our national interest).]



However, as we cannot afford to miss the huge market of China, it is imperative to secure advanced technology that both the United States and China need along with strategic diplomacy.



(Video editing: Seunghee Lee, VJ: Youngsam Jeong)



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