Foreign ministry keeps low profile over trade war between US, China

By Lee Min-hyung

Foreign Minister Kang Kyung-wha

The foreign ministry is keeping a low profile in handling the ongoing trade conflict between Washington and Beijing, in an apparent move to avoid any potential backlashes from the two countries, sources said Thursday.

The Ministry of Foreign Affairs plans to launch a special taskforce no later than the end of this week to monitor the situation and come up with countermeasures over the year-long trade war between the two economic powerhouses. The unit will consist of seven officials and the ministry plans to run the body for about six months.

Officials from diplomatic and economic circles said expectations are low for the unit to play a game-changing role at a time when the trade dispute is extending to a global scale.

“The launch of the taskforce is already too late considering the scale of the issue,” an expert familiar with the issue said.

“On top of that, the taskforce should have been set up at Cheong Wa Dae or the prime minister's office, as the issue is closely related with the nation's local economy.”

He pointed out that no clear breakthroughs can be found as of now, and the best-case scenario is to walk the middle ground between the two countries.

“We should deliver a clear message to the U.S. that Washington is our strongest ally and ensure that Seoul is on the side of Washington in handling the trade dispute,” he said.

“But Korea should never make that public to avoid any possible economic retaliation from China.”

The U.S. government is stepping up pressure on Korea to take part in its anti-Huawei campaign. But China is also threatening some Korean companies not to comply with such a move.

Local industry experts expressed concern over the dispute, saying a possible longer-than-expected trade war between the two countries may pose a serious burden to the local economy.

“We understand there is no clear solution for the government as of now,” an industry source said. “But once the dispute is extended for a longer period of time, this can deal a severe blow to some IT companies relying on the Chinese market.”