The US and China trade wars of two axis of the global economy are becoming reality.
As the United States imposed a $ 60 billion tariff in retaliation for China`s breach of intellectual property rights, the Chinese Department of Commerce immediately launched a counterattack by imposing a $3 billion tariff on 128 U.S. products.
Global stock markets plummeted dramatically and The WSJ reported that world was horrified by the terrible of uncontrolled commerce war. This trade war is a step in keeping the United States " Economic security "on the rapid growth of China's high-tech sector.
China, once called the "World Factory" by cheap labour put their hand to rebellion. To take an instance from smartphone, Huawei,Oppo,Vivo's superiority in Apple designed by California and produced by China is striking. Oppo and Vivo are focused on advanced technologies, not only low-price.
China is moving from 'Made in China' to 'Created in China' through the 'China Manufacturing 2025' plan for the manufacturing powerhouse. By the manufacturing 2025 project has an ambition to boost China's competitiveness to surpass the US, Germany, and Japan levels and to become the world's No.1 in 2049.
China has successfully landed the world 's third lunar exploration satellite after the US and Russia in 2014 in the space industry which can be considered a high - tech powerhouse. According to Financial Times that the Trump government emphasized "economic security is the security of the country," that is meaning the United States to take aim at the Chinese manufacturing 2025.
It is not so simple in terms of our reality.
In Korea, China and USA are first and second market highly dependent on exports of Korea that counts 25 percent of China and 12 percent of US market.
If the market shrinks due to the friction between the U.S. and China, Korea could be caught in the middle of
the market and not be able to choose either.
Here is another approach.
Korean companies could be taken opportuity through the trade wars between the United States and China. The United States is planning to reduce the production of high-tech products in China in the future. This opportunity should be taken as an opportunity to acquire a Korea premium with consigned production of Korean companies
Last year, Samsung Electronics promoted the foundry business team which was in the system LSI (non-memory based) business division to the business department. A foundry is a business that produces semiconductors commissioned by another company.
Samsung's foundry business is the fourth-largest in the world, with sales exceeding 5 trillion won and reaching 10% of semiconductor sales.
It's a time for Samsung Electronics or LG Electronics to propose Apple's smartphones as a consignment processing production method. The Nokia, dominated the market long before, also produced their 70 percent of its products in the manner of commissioned processing Elcoteq.
Italian companies with the world's best competitiveness in kitchen appliances dominate the market with the largest market share, but they are selling the second brand in the same factory.
Korea's powerful high-tech companies have to learn their management methods