TURKISH CENTER  for ASIA PACIFIC STUDIES

This UPI file photo shows U.S. President Donald Trump (L) greeting Chinese President Xi Jinping before a bilateral meeting at the Gimhae International Airport terminal in the southeastern city of Busan on Oct. 30, 2025. (PHOTO NOT FOR SALE) (Yonhap)

​SEOUL, Nov. 28 (Yonhap) -- China's manufacturing sector could further strengthen its global dominance amid trade tension with the United States, potentially posing a risk to South Korea and other manufacturing-focused countries, South Korea's central bank said Friday.

"Even if the U.S. eases its tariff policies, the U.S.-China competition is likely to persist, and China is expected to continue diversifying its export destinations," the Bank of Korea (BOK) said in a report.

"Such diversification is projected to cushion the short-term decline in exports to the U.S. and, in a longer term, further expand the presence of China-made products in emerging and other non-U.S. markets," it added.

In the second and third quarters, China's exports to the U.S. plunged 26 percent, while its shipments to Europe, the Association of Southeast Asian Nations and Africa rose 12 percent over the same period.

Overall, China's customs-based export growth has been accelerating this year, rising from a 5.6 percent on-year increase in the first quarter to a 6.1 percent rise in the second quarter and further to 6.5 percent in the third quarter, the BOK said.

"If China's strong manufacturing competitiveness is combined with artificial intelligence (AI) and other advanced technologies, its role as the world's factory could become even more entrenched. In the process, countries with manufacturing-centered economies, including South Korea, Germany and Japan, could face mounting challenges," the report read.​​

By Oh Seok-min 

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Source: Yonhap News Agency

China's manufacturing dominance could grow amid U.S. tariff war, posing risks to S. Korea: BOK

November 28, 2025