Chinese nightmare

By John Burton

What is interesting about the recent backlash against the videotaped apology of Chou Tzu-yu, the Taiwanese member of the K-pop girl group Twice, is how it has exposed the pitfalls of Korea’s economic dependence on China and the underlying unease this has created among Koreans.

For those who have not been following the story, Tzu-yu, was recently forced to make a public apology posted on Youtube that would not have looked out of place during the Chinese Cultural Revolution 50 years ago, with the singer appearing without make-up and bowing deeply before reading a prepared statement confessing her sins and parroting the language of Beijing in proclaiming her support for “one China.”.

Her “crime” was that she had waved the national flag of Taiwan on a Korean variety show. This incensed Chinese bloggers who accused the 16-year-old her of being a “splittist” by encouraging Taiwanese independence. Chinese TV canceled an appearance by Twice.

The apology, however, aroused the ire of Koreans who believed she was forced to make her confession because Twice’s management agency, JYP Entertainment, feared it would lose more business in China, a big K-pop market. JYP’s website was shut down by hackers in protest.

The impression was that Tzu-yu was first bullied by Chinese bloggers and then her own employer, with JYP seen as kowtowing to China in a manner that was reminiscent of the sadae (serving the great) relationship that once existed between Imperial China and Joseon Korea.

The fallout did not end there. When it was reported that LG Uplus had also decided to drop Tzu-yu from ads for China’s Huawei smartphone being sold in Korea by the mobile operator, the Hong Kong Facebook page of LG Electronics was filled with angry comments and calls to boycott all LG products.

The incident also did not help Korea’s image in Taiwan, where it became an issue in the recent presidential election with the winning candidate, Tsai Ing-wen of the pro-independence Democratic Progressive Party, citing it as an example of Chinese bullying.

Comments by Koreans reflected similar anger that a minor was being forced to humiliate herself on a political issue in a country that claims to be a democracy.

The Tzu-yu incident looks set to add to growing skepticism about whether China is a responsible neighbor for Korea. It came shortly after Beijing adopted an ambiguous position on the recent nuclear test by North Korea in early January.

There is growing disappointment that China has not taken a firmer response so far against North Korea, particularly after President Park Geun-hye has actively pursued a policy of forging closer ties, including holding six meetings with Chinese President Xi Jinping and even being the only U.S. ally to attend the massive military parade in Beijing in September to mark the 70th anniversary of the end of World War II in Asia.

Relations between Seoul and Beijing could cool if China refuses to approve and carry out stronger international economic sanctions against North Korea in response to the nuclear test since China is the major source of energy and food to Pyongyang.

President Park has hinted, for example, that she might approved deployment of the THAAD missile defense system being pushed by the U.S., but which is opposed by China as a security threat. China’s failure to help curb North Korea’s nuclear ambitions would help justify placing the THAAD system in South Korea since Seoul could claim that it is primarily aimed at defending the country against a North Korean nuclear missile attack.

Moreover, Koreans are realizing that their economic dependence on China represents a two-edged sword. Korea’s economy is likely to slow if Chinese recent economic problems continue since the country consumes a quarter of Korea’s exports.

On the other hand, a resurgent Chinese economy poses a different threat. Chinese companies like Haier, Huawei and Alibaba are mounting an effective challenge to Korean competitors. Huawei and Xiaomi have already undercut sales of Samsung smartphone in China and could do so in other emerging markets, such as Southeast Asia and India, because their products are much cheaper. Other industrial sectors where Korea is strong, from steel to chemicals, are also feeling of the effects of excess Chinese investment that is leading to rapidly declining prices.

Chinese companies are also becoming major buyers of Korean assets, ranging from the financial firms and technology to internet services and digital games. SK Hynix was reported to have recently rebuffed an investment bid by China’s Tsinghua Unigroup.

Other contentious issues divide China and Korea, including an unresolved dispute over conflicting claims to exclusive economic zone boundaries in the West Sea.

Chinese President Xi Jinping speaks of the Chinese Dream, but for Korea it has the potential of turning into a nightmare.

John Burton, a former Korea correspondent for the Financial Times, is now a Seoul-based independent journalist and media consultant. He can be reached at johnburtonft@yahoo.com.