Interview with Chad Bown, Senior Fellow at PIIE
“South Korea, an Irreplaceable Partner for the West”
“Strengthen Irreplaceable Strengths in HBM and Shipbuilding”
“Avoid Unconditional U.S. Investments, Focus on Profitability Assessments”
“The West, including the United States, wants the ‘best alternative’ to Chinese-made products. Korea’s memory semiconductors, shipbuilding, and batteries are exactly that best alternative.”
This is the assessment provided by Chad Bown, Senior Fellow at the Peterson Institute for International Economics (PIIE), a leading expert in global trade and industrial policy, regarding Korea’s survival strategy amid U.S.-China power competition. On September 1, at the FKI Tower in Yeouido, directly after the International Trade Society Summer Conference hosted by the Federation of Korean Industries, Bown met with The Asia Business Daily and identified China as the main threat in the global trade environment, emphasizing that the Korean government and corporations should align more closely with Western powers.
Bown is a distinguished figure who has been deeply involved in shaping U.S. trade policy, having served as Senior Economist at the White House Council of Economic Advisers (CEA) during the Obama administration and as Chief Economist at the Department of State in the Biden administration. Over the course of 30 years, he has studied global trade disputes and supply chains, also serving as Senior Economist at the World Bank (WB) and a visiting fellow at the World Trade Organization (WTO).
Chad Bown, Senior Fellow at the Peterson Institute for International Economics (PIIE), is being interviewed by The Asia Business Daily immediately after the International Trade Association Summer Conference held on the 1st at Yeouido FKI Tower, hosted by the Federation of Korean Industries. Photo by Jin-Young Kim
“The Real Threat Is China, Not Trump… U.S.-China Power Rivalry: The Side to Choose Is Obvious”
Bown focused on the unique position held by Korean companies as U.S.-China power competition intensifies. He stated, “Korea already plays a critical and indispensable role within the Western bloc, which spans the United States, Japan, Taiwan, and Europe. If Korea were to choose the Chinese ecosystem, it is doubtful whether they could secure the pivotal role they currently enjoy within the West. From this perspective, Korea’s choice seems almost unmistakable.” He argued that even if Korea has to accept the cost of choosing a side—such as sacrificing export markets or access to raw materials—remaining in the Western ecosystem where it holds a technological edge would be more advantageous.
Bown particularly expressed strong concern about China’s market monopoly and the establishment of entry barriers. He warned, “Our biggest concern is China achieving a 90% market share in certain industries. Once they secure dominant control, they can cut off product supply entirely and weaponize it, or raise prices significantly, depriving all consumers of benefits.”
Chad Bown, Senior Fellow at the Peterson Institute for International Economics (PIIE), is conducting an interview with The Asia Business Daily right after the Summer Academic Conference of the International Trade Association held on the 1st at the FKI Tower in Yeouido, hosted by the Korea Economic Association. Korea Economic Association
He further identified the ‘predatory pricing strategy’ used by China to block Western companies from entering new markets as a key threat. “Whenever Western countries attempt to build new alternative supply chains for rare earth elements and critical minerals, large Chinese state-owned enterprises suddenly drop prices dramatically,” he explained. “This prevents Western companies from making any profit, even if they do enter the market.”
This echoes the core message from his keynote speech earlier that day. Bown noted that “China envisions a world where it reduces its dependence on the global supply chain while ensuring that the rest of the world remains dependent on China’s supply chains.” He suggested that rather than being preoccupied with visible policy risks like tariffs or so-called ‘Trump risks,’ stakeholders should focus on the underlying threats: China’s monopolistic market dominance and its weaponization of the supply chain.
South Korea’s Irreplaceable Strengths in HBM, Shipbuilding, Batteries… Investment in the U.S. Needs to Be Judged by Profitability
Bown advised Korea to “identify your strengths and build on them further” in this international context. When the world fears the weaponization of the supply chain by China and seeks the ‘best alternative,’ it is Korea that provides the answer. Referencing high-bandwidth memory (HBM) from Samsung Electronics and SK hynix, the shipbuilding industry capable of constructing large ships, and secondary batteries, he remarked, “Whenever the world is worried about its reliance on China and the risks of weaponization, the very first alternative sought is Korean corporations.”
Bown positively assessed the current situation where Korean companies are making large-scale investments in the U.S. tailored to the expectations of the Trump administration. “So far, the Korean government and companies have made very sound judgments about which investments are rational within the United States,” he explained, “and the United States equally has an urgent need for South Korea’s strengths in shipbuilding and memory semiconductor manufacturing.”
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However, he cautioned against investing blindly in the name of avoiding geopolitical risk. “Any investment being considered by the Korean government and corporations as part of negotiations with the Trump administration should undergo thorough, ongoing profitability assessments,” he emphasized. “It’s essential to rigorously review which U.S. investments will actually yield returns, and if any Korean taxpayer money is used, ensure that a proper return on that investment is achieved.”
Chad Bown, Senior Fellow at the Peterson Institute for International Economics (PIIE), is conducting an interview with The Asia Business Daily immediately after the International Trade Association Summer Conference hosted by the Korea Economic Association at the FKI Tower in Yeouido on the 1st. Korea Economic Association
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