South Korea Prepares Response to U.S. Investment Restrictions on China

SEOUL, Oct. 29 -- The finance ministry of South Korea announced that it will actively monitor and respond to the United States' recent decision to limit investments in significant technology sectors within China. Although the ministry estimates that these new measures will have a minimal effect on the South Korean economy, it emphasized the importance of thorough analysis and timely reactions to any potential impacts.

On the previous day, the U.S. Treasury Department unveiled its final regulations regarding investments in artificial intelligence, semiconductors, and other advanced technology fields in China. These rules are set to take effect on January 2, 2025, and are aimed at addressing national security concerns.

The South Korean government's assessment indicates that the direct consequences of these regulations on their economy are likely to be limited. However, the ministry stated that it would maintain open lines of communication with industry experts and businesses to ensure a comprehensive evaluation of the situation. The focus will be on understanding possible outcomes and formulating proactive strategies.

According to the regulations, U.S. persons or entities will be prohibited from making certain investments in China, which includes special administrative regions like Hong Kong and Macao. The U.S. government has categorized these areas as 'countries of concern' subject to the new investment restrictions.

This decision by the U.S. is a continuation of the ongoing technological rivalry between the United States and China, which has intensified over the past few years. As the global landscape shifts with these developments, other countries, including South Korea, are assessing their position and potential strategies to remain competitive.

South Korea, US, Investment