S. Korea Vows Active Response to U.S. Investment Curbs on China

SEOUL, Oct. 29 -- The United States has announced plans to restrict investments in key technology sectors in China, which South Korea believes will have only a modest effect on its economy. The South Korean finance ministry stated that it will monitor the situation closely and develop necessary responses.

On Monday, the U.S. Treasury Department released final regulations aimed at limiting U.S. investments in critical technologies such as artificial intelligence and semiconductors in China. These rules will take effect on January 2, 2025, and are a response to concerns about national security.

The finance ministry remarked, "Based on the specifics of the regulations, their immediate impact on our economy is expected to be minimal. However, our government will stay in touch with industry experts and businesses domestically to thoroughly understand the potential effects, and we will actively formulate our responses as needed."

The new guidelines target U.S. individuals and entities, labeling China, along with Hong Kong and Macao, as a "country of concern" as defined by the U.S. government. This reflects ongoing tensions and the competitive technological landscape between the U.S. and China.

The situation is being keenly observed in South Korea, which is a significant player in the global technology market. The government is prepared to engage with stakeholders to ensure that South Korea can navigate this complex environment effectively.

This backdrop is part of a larger narrative of increasing technological rivalry between the United States and China, impacting policies not just in those nations but also in countries like South Korea, which have considerable economic ties and technological investments in China.

investment, technology, economy