A Study on the Response Strategy of Korea Companies to the U.S. - China Trade Dispute

Abstract

Purpose The purpose of this study is to seek a strategy for Korean companies to respond to trade disputes between the U.S. and China. Design/Methodology/Approach Through the current status of trade retaliation between the U.S. and China, the impact of trade retaliation on the U.S. and Chinese economies was investigated. Findings As a result of the research in this paper, the U.S.-China trade conflict will intensify in the long run rather than ease, forcing it to stand on the side of the U.S. Therefore, Korean companies that have entered the U.S. should check whether Chinese companies or the Chinese government are included in the supply chain of product production. In addition, various response strategies should be prepared in preparation for China’s trade sanctions. Research Implications As the U.S.-China trade conflict continues, it is necessary to pursue a strategy centered on the Korea-U.S. alliance along with a strategy to minimize economic losses caused by China’s trade sanctions.