A Battleground in the Sino-American Chip War
In December 2024, South Korea found itself at the epicentre of escalating tensions between the United States and China, particularly concerning semiconductor technology and geopolitical alliances. The U.S. intensified its efforts to curb China’s technological advancements, leading to significant political and economic repercussions for South Korea.
The United States has been urging South Korea to align with its export controls aimed at restricting China’s access to advanced semiconductor technologies thereby slowing Beijing’s quest for AI supremacy. This pressure includes limiting exports of fabrication tools and parts that could be used to produce advanced logic chips. The U.S. seeks to prevent China from acquiring technologies that could enhance its military capabilities, urging allies like South Korea to participate in these sanctions. South Korea, heavily reliant on China for trade, has struggled to navigate these demands without jeopardizing its economic stability. Samsung and SK Hynix, both leading semiconductor producers and influential conglomerates that enjoy huge influence amongst Seoul’s political class and were significantly impacted by these measures.
In parallel, the Biden administration expanded its export controls in December 2024 by adding nearly 140 Chinese technology companies to trade restrictions. This action targeted firms involved in producing computer chips, chipmaking tools, and software, aiming to restrict China’s use of U.S. technology to advance its semiconductor industry. These measures are part of a broader U.S. strategy to impede China’s progress in artificial intelligence and advanced weaponry, further intensifying the global chip war.
This pressure on South Korea reached a tipping point when President Yoon Suk Yeol declared emergency martial law on December 3, 2024, citing threats from “communist forces” and “anti-state elements”. This unprecedented move temporarily granted the military authority to maintain order and suspended activities of the parliament, local councils, and political parties. Yoon feared that South Korea’s powerful conglomerates and collusion with the KDP would balk at meeting America’s demands. The declaration led to widespread protests and political backlash, prompting the National Assembly to overturn the martial law within hours. President Yoon later issued an apology for the decision, acknowledging the political and social unrest it caused. And as expected the impeachment drive also failed as the ruling party withdrew its support.
Amid these developments, concerns have grown in both the U.S. and South Korea about the Democratic Party of Korea (DPK), the main opposition party. Many fear that if the DPK gains power, South Korea might adopt a more pro-China stance, potentially jeopardizing its alliance with the U.S. These apprehensions stem from the DPK’s perceived inclination toward strengthening ties with China, a shift that could have far-reaching consequences for South Korea’s foreign policy.
These events are part of the broader Sino-American competition over artificial intelligence and technological supremacy. As the U.S. seeks to maintain its edge by limiting China’s access to critical technologies, China continues its efforts toward achieving self-sufficiency in these areas. South Korea, a leading semiconductor producer, is caught in the crossfire, balancing its economic interests with growing geopolitical pressures.
With Donald Trump set to assume office in January 2025, this technological and geopolitical battle is expected to escalate further. Countries like South Korea, Japan, and Australia may find themselves with no choice but to side with the U.S., given the increasing economic and strategic pressures. This alignment will deepen the divide between U.S.-led alliances and China’s sphere of influence, shaping the trajectory of global technology and diplomacy for years to come.
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