South Korea wants to combat the “threat” of Donald Trump

According to information from the international portal Reuters, South Korea wants to help national chip manufacturers and combat the threat from American President Donald Trump. A new law provides financial subsidies for companies such as Samsung, LG and SK Hynix.

The South Korean government’s new law aims to combat the possibility of President Donald Trump imposing taxes on imports. With it, the Asian country is keeping an eye on movements between China and the United States to remain firm in the segment.

President Yoon Suk-Yeol highlighted the need for the measures, as the possibility of sanctions on China opens the door for competing companies to distribute cheaper chips. We emphasize that Trump’s promises involve taxing not only China (by 60%), but up to 20% on allied countries (which includes South Korea).

In this way, the Asian country follows the same line as China and tries to increase its protection against Donald Trump’s threats. We remember that despite the statements, there is no guarantee that we will see the American president fulfilling his promises. Even so, the market has already begun to organize itself.

Finally, the South Korean law also ends the working hours limit in the chip sector. This way, companies like Samsung, LG, etc. can further increase the weekly working hours, exceeding the 52-hour working day (which is the current limit).

South Korea and China are keeping an eye on Donald Trump’s movements

Not only is South Korea keeping an eye on Donald Trump’s moves, China is the country most concerned about the Republican’s victory. China wants to protect itself against Trump’s return to the White House and has already increased controls on the export of rare metals.

China began implementing preventive measures, seeking new international partners and increasing the purchase of equipment. During Trump’s first term, the country suffered several trade restrictions, limiting access to American technologies.

Zhu Jing, deputy secretary-general of the Beijing Semiconductor Industry Association, has guided Chinese companies to strengthen their international presence. He highlighted the chance of new opportunities emerging if there is a weakening in coordination between the US, Japan and Europe on sanctions.

While the United States wants to impose sanctions and impede China’s growth, the Asian country seeks self-sufficiency. Likewise, South Korea is keeping an eye on Donald Trump’s movements and is preparing for the possibility of taxes on the technology industry.

The South Korean president also recalled Trump’s threats, when he promised to cut American federal subsidies for companies such as TSMC, Samsung and SK Hynix. As we can see, Asia is in the mode of keeping an eye on the likely repercussions of the American president’s government.

Source: Reuters