China and South Korea agree to step up talks on chip market – China’s Ministry of Commerce

BEIJING, Might 27 (Reuters) – China and South Korea have agreed to strengthen dialogue and cooperation on semiconductor market provide chains, amid broader worldwide issues more than chip supplies, sanctions and national safety, China’s commerce minister mentioned.

Wang Wentao met with South Korean Trade Minister Ahn Duk-geun on the sidelines of the Asia-Pacific Financial Cooperation (APEC) conference in Detroit, which ended on Friday.

They exchanged views on sustaining the stability of the industrial provide chain and strengthening cooperation in bilateral, regional and multilateral fields, the Chinese Ministry of Commerce mentioned in a statement on Saturday.

Wang also mentioned China is prepared to perform with South Korea to deepen trade ties and investment cooperation.

Having said that, a South Korean statement at the very same meeting did not mention the chips, rather saying the country’s trade minister asked China to stabilize the provide of crucial raw supplies and asked for a predictable company atmosphere for South Korean businesses in China.

“The South Korean side has expressed the have to have for communication in between officials at the operating level in all industries,” not just semiconductors, a supply familiar with the matter told Reuters. The supply declined to be identified due to the fact they had been not authorized to speak to the media. South Korea is in the crosshairs of a dispute in between the United States and China more than semiconductors.

China’s cyber regulator mentioned final week that Micron ( MU.O ) had failed a network safety audit and would block crucial infrastructure operators from shopping for from the corporation. The US has asked nations to limit China’s access to sophisticated chips, citing a variety of causes, like national safety.

About 40% of South Korea’s chip exports go to China, according to trade ministry information, whilst American technologies and gear are vital to South Korean chipmakers Samsung Electronics ( 005930.KS ) and SK Hinik ( 000660.KS ).

Reporting by Ella Cao and Bernard Orr and Joyce Lee in Seoul Editing by Kim Coghill

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