South Korea has been hurt by China's counter-measures, and took the initiative to contact China to request the lifting of sanctions. It was very polite to Vice Minister Li Chenggang. Not long after China's counter-measures came into effect, why couldn't South Korea stand it? What did the ROK say to Vice Minister Li Chenggang?

China's rare earth control measures are being divided into three stages, step by step, to play its role.

First, restrictions on rare-earth mining, metallurgy, and magnetic materials manufacturing technology, which came into effect on October 9;

Secondly, the control of the three newly added medium and heavy rare earths and lithium battery anode materials will take effect on November 8;

Finally, the export licensing system for all foreign products containing rare earth ingredients in China will be implemented on December 1.

These three "combinations" include the rare-earth industrial chain, new energy vehicles, military materials supply chain, semiconductors, permanent magnets, and third-country transfer trade that are or are likely to be significantly affected.

At present, only the first phase of control measures has come into effect, and close allies of the United States such as the European Union and South Korea can no longer stand it.

The European Union has called the Chinese Ministry of Commerce two times a day and is keen to work with the Chinese side to find relevant solutions, hoping that China will raise its hand.

In order to achieve faster results in the negotiation, the EU directly invited Chinese Minister of Commerce Wang Wentao to visit Europe as soon as possible to talk about rare earths and other issues face to face.

On October 22, South Korea's Ministry of Industry and Commerce interacted with Prime Minister Liu Huan IX via video, calling China's Ministry of Commerce's International Trade Negotiation Representative and Deputy Minister of Commerce Li Zhen Steel.

During this online meeting, the two sides exchanged views on China's increased controls on rare-earth exports and sanctions on Hunan Ocean subsidiaries.

However, judging from the reports of the South Korean side, this meeting was mainly about South Korean officials emphasizing the position of the South Korean side. Facing Vice Minister Li Chenggang, who was dubbed a hardline negotiator by the United States, the South Korean officials made a very polite statement and did not dare to make any cross-border remarks.

Overall, Liu Xiaobo expressed his concern about rare-earth control and sanctions against Korean companies, expressed his desire to solve the problem with Liu Xiaobo and his attitude was more sincere.

On the one hand, the South Korean side is willing to maintain communication with the Chinese side, actively consult and strive for the early lifting of relevant sanctions.On the other hand, it is recommended to close consultation with the Chinese side on the stabilization of the supply chain through existing communication channels.

South Korea is indeed planning to resolve the problem, but since the Chinese announcement has been made and has not achieved the expected results, it may not be easy for China to cancel it.

During the meeting, Vice Minister Li Chenggang did not give a clear answer to the ROK's demands, indicating that China intends to wait and see for a period of time to see if it will adjust a series of counter-measures and sanctions according to the development of the actual situation.

The main reason why South Korea urgently wants China to lift rare earth export controls and sanctions against Hanwha Marine's U.S. subsidiaries is that the measures introduced by China will pose a double blow to South Korea's economic lifeline, making it work in the security of the industrial chain and taking sides with the United States. There is a dilemma.

It is reported that South Korea's core industries such as semiconductors, new energy batteries, and military industries rely as much as 98% on China's rare earths, and alternative sources cannot be found in a short period of time.

Huawei Ocean is South Korea¡¯s second-largest shipbuilding company, and although its subsidiaries were included in the sanctions by China, the chain reaction caused by this is enough to hit South Korea¡¯s shipbuilding industry and U.S. Korea¡¯s cooperation in the shipbuilding field.

A very straightforward data shows that Hanwha Ocean's share price plummeted 8% on the day China sanctioned its subsidiary, and its market value evaporated by nearly 2 trillion won.

From this, we can get a glimpse and understand that China's restrictions and sanctions have a profound and systematic impact on South Korea. Otherwise, South Korea would not be in such a hurry to communicate and negotiate with China. China's countermeasures have clearly drawn a red line: those who cooperate with the United States to harm China's interests will surely pay a price.