China and South Korea sign $44 million in trade deals as relations thaw

China and South Korea have revitalized economic cooperation following years of relatively stagnant relations. Following a high-level summit held against the backdrop of shifting regional dynamics, new export agreements totaling $44 million US and dozens of memoranda of understanding (MOU) were signed.

According to the South Korean Ministry of Trade, Industry and Energy, the country held an export promotion and investment attraction event in Beijing for the first time in nine years. Approximately 300 people, including businesspeople and investors from both countries, attended the event held on Tuesday. Major Chinese technology companies such as Alibaba, JD.com, and Tencent, as well as representatives from the Shandong and Liaoning provincial governments, were present.

The event featured one-on-one export negotiations, investment presentations by South Korean regional governments, and promotions of Korean consumer products. The Ministry announced that as a result, 24 export contracts with a total value of $44.11 million US were signed.

32 MOUs signed

This flurry of agreements followed the summit held on Monday between South Korean President Lee Jae Myung and Chinese President Xi Jinping. The event was seen as a turning point in long-term efforts to repair bilateral relations, which had been strained after Seoul’s 2017 deployment of the US-made Terminal High Altitude Area Defense (THAAD) missile system; Beijing had strongly opposed this deployment.

According to the South Korean Presidential Office, the economic delegation accompanying Lee consisted of 400 participants from 161 companies, including senior executives from major holdings such as Samsung, SK, Hyundai, and LG.

In a development further strengthening bilateral goodwill, 32 MOUs were signed between companies on Monday, according to the Korea Chamber of Commerce and Industry. One of the most notable was an agreement between Alibaba and Shinsegae Group, aimed at promoting high-end South Korean products through Alibaba platforms and targeting a transaction volume exceeding 1 trillion won ($690.6 million US) annually within five years.

Other agreements covered content development, future mobility technologies, robotics, and the expansion of South Korean food and cosmetic exports. However, China’s informal boycott of Korean pop culture, which has been effectively in place since the 2017 THAAD deployment, was not addressed.

South Korean Industry Minister Kim Jung-kwan said in a statement, “In cooperation with relevant institutions, we will increase support—including online and offline marketing initiatives and distribution network connections—to help Korean companies create more business opportunities in the Chinese market.”

Xi calls for ‘patience’ regarding North Korea

This renewed momentum contrasts with the current tension in China-Japan relations. Tensions between Tokyo and Beijing have escalated since Japanese Prime Minister Sanae Takaichi stated in November that Japan could intervene in the event of a possible military conflict in the Taiwan Strait.

South Korean President Lee Jae Myung said on Wednesday that Chinese President Xi Jinping called for “patience” regarding North Korea’s nuclear program. Speaking during a visit to Shanghai, Lee stated that he asked Xi to take on a role as a “mediator for peace” on the Korean Peninsula—including the nuclear issue. He said that all channels between the North and South are blocked and that “zero trust” exists between the two sides.

“President Xi noted the efforts made so far and said that patience is necessary,” Lee said. He added that Chinese Premier Li Qiang similarly emphasized patience and responded to the request for mediation by Beijing.

Stating that the North’s perspective must be understood, Lee said: “For a long time, we have effectively carried out acts of military aggression against the North. Pyongyang was likely extremely uneasy. This created great hostility, and there is a karmic response that has accumulated over a long time. It will take a lot of time and effort to ease this antagonism and allow dialogue to begin.”

According to the South Korean Presidential Office, during the summit, Xi and Lee agreed on the need to restart dialogue with North Korea and revitalize cultural exchanges.

First visit since 2019

Lee’s visit to China is the first by a South Korean leader since 2019. The visit included the meeting Lee held with Xi in Beijing on Monday. The pair had previously met during the Asia-Pacific Economic Cooperation (APEC) summit held in South Korea in late October and early November.

On Wednesday, the Communist Party’s organ, People’s Daily, published an editorial stating that two meetings held within two months sent a positive message and urged both sides to “cherish the positive momentum in China-South Korea relations.” Describing the two countries as “important neighbors” and “inseparable partners,” the article stated, “As long as China and South Korea adhere to the principle that ‘peace is precious’ and can transcend differences in social systems and ideologies, we can achieve mutual success and common development.”

The editorial called for more exchanges among youth, sports, media outlets, think tanks, and local communities. It also stated that the two leaders discussed their countries’ struggle during the period of joint war against Japan and therefore should work together to defend the gains of the World War II victory and maintain peace and stability in Northeast Asia.