Economic cooperation increased dramatically; obstacles in diplomatic,  political realms remain

This is the first in a series of articles to mark the 20th anniversary of diplomatic ties between South Korea and China. ― Ed.


South Korea and China have made considerable progress in economic, social and cultural ties since they opened diplomatic relations two decades ago.

But on diplomatic and political fronts, their relationship has been beset by problems such as differences over North Korea and lingering distrust left over from the Cold-War era.

As the United States, South Korea’s key ally, refocuses on the Asia-Pacific, Seoul and Beijing should try to enhance mutual understanding to prevent misconceptions about their foreign policy and expand their areas of cooperation, political experts say.

“Now that China has become South Korea’s largest trading partner, the two have made dramatic economic progress. But in terms of mutual trust, they appear to be retrogressing,” said Chung Chong-wook who served as Seoul’s ambassador to Beijing from 1996-98.

“On diplomatic and political fronts, the two appear to have been caught in a Cold-War frame considering their differences over issues concerning North Korea, a key variable in their relationship,” said Chung, who is a chair professor at Busan’s Dong-A University.

Despite political challenges, hopes have emerged that deepening economic interdependence would lead the two nations along the path toward cooperation rather than diplomatic confrontation.

The hopes have been reinforced as China prepares for a once-in-a-decade leadership transition later this year when a younger generation of new leaders seen as more practical and peace-loving is expected to comprise the communist leadership.

But skeptics argue that Seoul should carefully watch Beijing’s growing assertiveness based on its military and economic power, particularly amid Washington’s strategic reengagement in the region.

Under former President Roh Tae-woo’s foreign policy initiative, dubbed “Nordpolitik,” ― German for northern policy ― Seoul severed ties with Taiwan and established diplomatic relations with Beijing in 1992.

Their economic relationship has thrived as it has satisfied the needs of both countries. For South Korea, cooperation with China with its huge market has offered new dynamo for its economic growth.

For China, Korea’s technology has been helpful for its industrialization. The opening of ties with Korea also helped it escape from international isolation that resulted from its bloody crackdown in 1989 on pro-democracy protesters at the Tiananmen Square.

The two countries elevated their relationship to a “strategic cooperative partnership” in 2008, leading to an increase in high-level contacts.

North Korea conundrum

Despite the deepened economic cooperation, the two countries have had differences over ways to resolve North Korean issues including its pursuit of nuclear weapons.

Beijing’s lukewarm response to Seoul’s calls for exerting more influence to rein in a provocative Pyongyang has been a major source of friction in their relationship.

China has long supported Pyongyang as it still thinks highly of its ally’s value as a strategic buffer against U.S. power and prioritizes stability not to impede its own economic growth, experts said.

Its moves in favor of Pyongyang when it killed 50 South Koreans in two attacks in 2010 have caused deep distrust between them.

Beijing’s insistence on repatriating North Korean defectors who could face brutal punishments back home has also worsened public sentiment here against China amid activists calling on it to protect their human rights.

But as South Korea’s economic value grows and the North’s continuing saber-rattling could hurt its national interests, China has shown some signs of readjustment to its handling of the North. Beijing made a stern response to the North’s failed launch in April and apparent moves to conduct a third nuclear test.

“If you think about how China protected the North, its ally, two decades ago, there has been a significant change. Beijing now does not take any side, but appears to remain neutral on inter-Korean issues (at least on the surface),” said Yun Duk-min, a professor at the Korea National Diplomatic Academy.

Some observers show cautious optimism for the two countries’ cooperation on North Korean issues given that both want stability on the peninsula and the economic reform in the North, and remain opposed to its pursuit of nuclear weapons.

“If the two continue to work in tandem based on this common ground, a positive outcome can be reaped with regard to North Korean issues. The new leaders to appear both in China and South Korea should also understand the importance of what we share in common,” said Chung of Dong-A University.

To capitalize on the common goals of denuclearizing the North and maintain peninsular peace, experts said that both nations should strive to improve their communication through effective channels rather than harboring suspicions based on speculations about each other’s intentions.

Deepening economic ties

Deepening economic interdependence has brightened the prospect of closer cooperation between Seoul and Beijing in non-economic areas such as politics, security and diplomacy. This could also help offset negative ramifications stemming from a growing contest for regional primacy between the U.S. and China, experts said.

Seoul is now in negotiations over a bilateral free trade pact with Beijing. The two-way trade volume, which stood at $6.3 billion in 1992, topped $200 billion last year ― one-fifth of Korea’s total trade volume.

About 50,000 South Korean firms have advanced into the Chinese market. For China, South Korea is the third-largest trading partner after the U.S. and Japan.

“Both South Korea and China, and the U.S. and China depend on each other economically. The U.S. cannot get by without economic exchanges with China and vice versa,” said Chun In-young, professor emeritus at Seoul National University.

“There is no bilateral relationship without a conflict. It is a matter of how to effectively manage it. Refraining from making emotional responses, we need to take a prudent, calm, well-coordinated response to any future conflict.”

Based on the benefits of economic cooperation, Yun of KNDA also offered an optimistic outlook for relations.

“FTA talks between them came as China appears politically isolated while it is engaged in territorial disputes in the South China Sea. It also felt uneasy about Washington striving to spearhead the Trans-Pacific Partnership (a free trade agreement with several Pacific-rim countries),” he said.

“At this time, good relations with South Korea could help it escape from its isolation. For this, China may not neglect its relations with Seoul.”

Some experts caution against too much economic dependence on China. They argue that South Korea with its export-driven economy should diversify its trade partners in due consideration of China’s past responses to trade-related conflicts.

In 2001, Beijing threatened to ban Korean mobile phones and polyethylene products after Seoul failed to keep the bilateral import deal because of pressures from domestic garlic farmers suffering from a decline in both price and demand.

Its temporary measure in 2010 to block exports of rare-earth elements to Japan following a territorial spat over their disputed islands in the East China Sea was also a sobering reminder that too much trade reliance on China could be risky.

Sino-U.S. rivalry

Another diplomatic source of friction between Seoul and Beijing is Korea’s deepening alliance with the U.S. To maintain its primacy in the Asia-Pacific, Washington is now deepening its diplomatic and military engagement in the economically vibrant region. The move has been seen as part of the U.S. efforts to keep a rising China in check.

With its strategic pivot, the U.S. is striving to form a closer security and trade network with its regional allies and partners including Vietnam and the Philippines, both of which want a stronger U.S. presence in the region as China aggressively asserts its interests in the South China Sea.

South Korea and Japan are the two core members of the network, which apparently unnerves China, concerned about America’s apparent move to hem the country in.

Recent military exercises in which troops from South Korea, the U.S. and Japan jointly participated have ratcheted up tensions and raised China’s suspicion against America’s shift in foreign policy.

Amid the changing security landscape triggered by China’s emergence as half of the Group of Two, experts said Korea should employ a balanced foreign policy rather than focusing too much on the U.S.

“Under the Lee Myung-bak administration, the Korea-U.S. relationship has significantly improved as their alliance evolved into a strategic partnership. Amid this development, it is true that the ties with China have deteriorated,” said Chung of Dong-A University.

“Between the security alliance with the U.S. and the trade partnership with China, we could be put between a rock and a hard place. But we need to address such imbalances and try to establish multilateral mechanisms to help address them.”

By Song Sang-ho (sshluck@heraldcorp.com)