The global economy is entering an era in which supply chains are judged not solely by efficiency but increasingly by resilience. Geopolitical tensions, technological competition and pandemic-era disruptions have pushed governments to rethink how critical industries are organized. Few sectors illustrate this shift more clearly than semiconductors, batteries, robotics and biotechnology — industries that now sit at the intersection of economic competitiveness and national security.

For countries deeply embedded in global manufacturing networks, the challenge is particularly acute. China and the Republic of Korea occupy pivotal positions in the industrial ecosystem of East Asia. Their economies are tightly connected through production networks, intermediate goods trade and technological supply chains. At the same time, strategic rivalry and geopolitical pressures have complicated the environment for bilateral economic cooperation.

Yet precisely because of these pressures, pragmatic collaboration between the two countries in advanced manufacturing deserves renewed attention — along with the spirit of mutual openness that such collaboration calls for.

Over the past two decades, China and the ROK have built formidable capabilities in high-technology industries, though through different development paths. The ROK's strength lies in specialized technological leadership. Its firms dominate the global market for memory semiconductors and are among the world's leading innovators in advanced battery technology and biopharmaceutical manufacturing.

China, by contrast, has developed unparalleled manufacturing scale. It has the world's largest industrial ecosystem, supported by vast domestic demand, extensive industrial clusters and strong government backing for strategic sectors. In areas ranging from battery materials to robotics, China has rapidly expanded both capacity and technological capability.

These differences often invite comparisons framed purely in terms of competition. But they also reveal important complementarities — ones best realized through a shared commitment to constructive and open engagement.

In semiconductors, the ROK leads in memory chips and advanced manufacturing processes while China rapidly expands its domestic ecosystem. In batteries, the ROK's innovation in high-performance cell technology complements China's comprehensive supply chain spanning materials, components and large-scale production. In robotics and biotechnology, the ROK's technological precision meets China's enormous market scale and growing innovation capacity.

Such complementarities matter because supply-chain resilience rarely comes from isolation. It is more often the result of diversified networks, transparency and reliable partnerships — qualities that both countries have strong incentives to cultivate together.

For China and the ROK, strengthening cooperation in advanced manufacturing could help reduce systemic vulnerabilities while preserving the benefits of integrated regional production networks. This does not mean eliminating competition. Rather, it means recognizing that strategic industries can simultaneously involve rivalry and collaboration.

There are several practical avenues to achieve this. One is establishing mechanisms to monitor supply-chain risks, where greater transparency on production capacity and critical materials would allow both sides to respond more effectively to disruptions — and lay the foundations for mutual trust. Knowledge-sharing frameworks in next-generation semiconductors, advanced battery chemistry and biotechnology could create shared stakes in technological progress while distributing costs and risks.

Closer collaboration in advanced manufacturing equipment and specialized materials could also reduce vulnerability to external disruptions. Equally important are structured exchanges between engineers, scientists and industrial experts — human networks that reinforce trust and sustain the knowledge flows on which innovation depends.

Recent diplomatic developments suggest that the momentum for such cooperation is already building. The China-ROK summit on the sidelines of the 2025 APEC meeting in Gyeongju in the ROK produced tangible results: a $49 billion currency swap agreement, a memorandum on a China-ROK Joint Economic Cooperation Plan for 2026-30, and pledges to deepen cooperation in areas spanning startups, agricultural trade and media exchange.

In January 2026, when ROK President Lee Jae-myung made a full state visit to Beijing, the two sides signed 15 cooperation documents covering areas such as technological innovation, ecological environment, transportation, and economic and trade cooperation. Maintaining effective channels of reciprocal communication between the two countries is essential for achieving meaningful cooperative outcomes, even as broader geopolitical tensions persist.

The 2026 APEC meetings, hosted by China, offer a further opportunity to build on this momentum. China and the ROK could jointly advance regional platforms for supply-chain cooperation, joint innovation funds for emerging technologies, or regular policy dialogues on industrial resilience — initiatives that would benefit not only both countries but the broader Asia-Pacific manufacturing system, one of the world's most dynamic engines of growth.

Competition between major economies will persist. But it need not preclude cooperation where interests overlap.

For China and the ROK — two of the region's most important manufacturing economies — pragmatic collaboration in advanced industry supply chains could help ensure that resilience does not come at the cost of fragmentation. The path forward lies in a shared commitment to open and reciprocal engagement — one that serves the long-term interests of both economies. In a world shaped by growing uncertainty, such cooperation may prove not only desirable but necessary.

The author is the former minister of Trade, Industry and Energy of the Republic of Korea, a distinguished professor at the Graduate School of Economics in Yonsei University and a senior advisor at Yulchon LLC Law Firm.

The views don't necessarily reflect those of China Daily.

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