ED Ten years of China’s rise
Chinese President Xi Jinping applauds after a joint press conference with Brazil's President Luiz Inacio Lula da Silva (not pictured) at the Great Hall of the People in Beijing, May 13. EPA/Yonhap
Korea’s decline will continue if crisis is underestimated
Ten years ago, few believed that China could evolve from a producer of low-cost, generic goods into a global leader in advanced manufacturing. But in just a decade since launching its “Made in China 2025” initiative, China has defied expectations — and redrawn the map of global industrial power.
Today, China holds the top position in at least seven high-tech sectors: electric vehicles, batteries, drones, 5G telecommunications, solar panels, high-speed rail and advanced materials. These are not marginal gains; they represent the heart of future industrial competitiveness. This transformation was the result of a deliberate, long-term national strategy — one that mobilized policy, capital, personnel and innovation in unison.
The scale of China’s commitment is staggering. It dismantled regulatory barriers, introduced sweeping tax incentives, and directed massive public investment into research and development. Since 2010, China’s R&D budget has grown at an average annual rate of 12.7 percent, reaching 646 trillion won ($471 billion) in 2024 — more than 20 times Korea’s 31 trillion won. Meanwhile, its universities and government agencies cultivated a generation of top-tier STEM professionals. Nearly half of the world’s artificial intelligence (AI) researchers are now Chinese nationals. Far from resting on its laurels, China is already advancing toward its next target: global leadership in AI and frontier technologies by 2035.
Korea, by contrast, has stagnated — and in some cases, regressed. Aside from semiconductors and parts of the secondary battery sector, Korea has lost ground across nearly all major industries. Its once-dynamic manufacturing sector is now beset by indecision, fragmented policies and political interference. Industrial policy changes with every administration. Regulatory burdens mount, but strategic direction is absent. Vision is short-term and populist. The result is a growing sense that Korea, once a model of technological dynamism, is now falling behind.
This divergence is not just a matter of industrial output; it is a reflection of national priorities. Where China treated advanced manufacturing as a matter of survival, Korea has allowed political agendas to eclipse economic logic. Manufacturing — a cornerstone of national power — is increasingly treated as an afterthought, invoked only for campaign slogans or symbolic policy gestures.
Recent presidential platforms illustrate the problem. One leading candidate focuses heavily on redistribution: a 4.5-day workweek, stronger union protections, expanded punitive damages. These proposals may resonate with certain voter blocs, but they also risk increasing business uncertainty and raising labor costs, particularly for manufacturers already under global pressure. Another candidate leans on the familiar promise of a “business-friendly environment,” yet fails to articulate any coherent strategy for workforce development, supply chain resilience or industrial innovation. Both approaches are dangerously out of step with the urgency of the moment.
Korea’s manufacturing malaise is not cyclical — it is structural. The country’s most vital industries are at risk. Engineering know-how is dwindling. High-potential startups are throttled by bureaucracy. Global competitiveness is declining. This is not just an economic issue; it is a national security concern. If Korea loses its edge in manufacturing, it forfeits its ability to lead in the technologies that will define the future — from clean energy to AI.
The path forward is clear but difficult. The next administration must develop a long-term, bipartisan industrial strategy, insulated from short-term political winds. It must establish a centralized control tower to align industrial policy across ministries. And it must create an ecosystem where large conglomerates, medium-sized enterprises and startups can all thrive together. This means investing in R&D, fostering STEM education, overhauling outdated regulations and reestablishing innovation as a core national value.
Ten years ago, the world underestimated China’s potential. Today, Korea is underestimating its own crisis. If this complacency continues, Korea risks becoming not just a follower, but a bystander in the next industrial revolution. The nation must act — decisively, strategically and with the full weight of government and society behind it.
The next decade begins now.