U.S. Treasury Secretary Janet Yellen emphasised the want for cooperation in provide chains between america and South Korea throughout her go to to LG Chem on July 19.
Yellen visited LG Science Park in Magok-dong, Seoul, the hub of LG Group’s know-how R&D.
“We need to forestall dogmatic international locations like China from gaining a dominant place over sure merchandise and supplies,” Yellen mentioned. “We must always introduce ‘friend-shoring’ amongst companions and allies and obtain stronger financial progress.”
Good friend-shoring is an thought proposed by Yellen to strengthen financial alliance and provide chains amongst like-minded international locations with shared values.
Yellen mentioned South Korea and america can defend their residents from inflation, handle geopolitical and financial dangers, and facilitate manufacturing of products via friend-shoring.
Noting that Korean firms are growing funding in america with respect to semiconductors and batteries, Yellen mentioned that a strengthened relationship between america and South Korea would supply progress momentum for the worldwide economic system. She additionally referred to as for cooperation to forestall world provide chain issues from inflicting inflation and hurting the economies of each international locations.
Particularly, Yellen denounced China, not directly pressuring South Korea to take part in the Chip 4 Alliance. She criticized China for making an attempt to safe a dominant place within the manufacturing surroundings of sure supplies and sources and introducing an irrational market order.
LG Chem has determined to speculate US$11 billion from 2020 to 2025 to localize its battery provide chain in North America, the world’s largest car market. Its investments in america are anticipated to develop if South Korea and america conform to strengthen cooperation in provide chains.