U.S. 'Friendshoring' Efforts with South Korea Face Hurdles from China's Large Market

The US is pursuing "friendshoring" with allies like South Korea for critical sectors like batteries and semiconductors, but faces challenges due to China's large market.

South Korean companies have concerns about how US policies like the CHIPS Act could impact them.

China is investing in and sourcing from South Korea to bypass US restrictions, undermining "friendshoring" efforts.

South Korea's new president takes a more hawkish view on China but the China market still appeals commercially.

The US needs an alternative to the China market for "friendshoring" with South Korea to work long-term.