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When candidate Joe Biden is elected in the US presidential election, environmental issues are predicted to emerge in business regulations. In contrast, one study found that if President Donald Trump is successful in re-election, South Korea will have to prepare countermeasures in the auto and steel sectors.
The Korea Industry Institute (KIET) presented the US trade policy outlook and countermeasures.According to each result through the report on the second of the report, ‘Trade Policy Outlook and Countermeasures after the US presidential election. ‘
The report was prepared from the presentation and discussion of experts in the field of industry, technology and commerce in the United States conducted jointly by ITIF, a think tank in Washington DC, and KIET for two days starting of the 19 of last month.
Biden and Trump’s common trade policy, according to KIET, is an interest in China’s controls and the establishment of a production network in the United States. The United States views China’s economic growth as a threat and addresses trade issues with China from a security perspective. In particular, both candidates are expected to strengthen regulations related to trade and investment to prevent the leakage of advanced technology to China. KIET predicted that “both candidates will emphasize domestication of the supply chain, urge US companies that have advanced abroad to return to the domestic market and regulate the transfer of new companies abroad.”
However, there are differences between the two candidates in detail. If Biden is elected, he is expected to make more efforts to maintain solidarity with the alliance to strengthen controls against China. This makes it even more important for Korea to choose between the United States and China. On the contrary, if Trump is elected, he is expected to be able to deal with some flexibility in office.
Biden’s and Trump’s supply chain localization strategies also differ. Biden values trust in the country in question. Consequently, Korea is expected to have room to participate in the newly established supply chain. However, Trump aims to build a supply chain that heavily excludes China.
Consequently, it is highly likely that Korea, which has many production bases in China, will either have to escape Trump’s re-election or expand investment in the United States.
Meanwhile, Bank of Korea Governor Lee Ju-yeol said on the same day: “According to the results of the US presidential election this week, market stabilization measures should be taken.” The BOK said on the day that “Governor Lee instructed executives and employees to make careful preparations for the US presidential election scheduled for the third (local time) at the executive meeting held at 9 am.”
At this meeting, President Lee said: “There is growing concern over the reproliferation of Corona 19, especially in Europe, and the volatility of domestic and foreign exchange and financial markets may increase depending on the results of the US presidential elections. “.
[오찬종 기자 / 김희래 기자]