Prerequisite for US-Korea Shipbuilding Cooperation: South Korea Participates in Confining the CCP.

On July 11, 2025, a senior official from the South Korean Ministry of Trade stated that U.S. President Trump has shown a positive intention to cooperate with South Korea in the shipbuilding sector, with the condition that South Korea participates in the U.S.’s strategy of containing the CCP.

According to reports from the South Korean News Agency and The Korea Herald, Chang Sung-gil, Director of the Trade Policy Bureau of the South Korean Ministry of Industry, Trade and Resources, mentioned during a trade negotiation themed discussion that the U.S. proposed that cooperation between South Korea and the U.S. should be based on the joint containment of the CCP, with shipbuilding being one of the most representative areas.

Chang Sung-gil expressed that the U.S. has a “sense of crisis” regarding the continuous growth of China’s market share in the shipbuilding industry and sees South Korea as a strategic partner in countering China’s shipbuilding industry. In the future, as South Korea and the U.S. advance their cooperation in shipbuilding, the U.S. may request South Korean companies to reduce the use of Chinese materials to achieve the purpose of containment against China.

“The premise of shipbuilding cooperation is South Korea’s participation in Washington’s efforts to contain China (the CCP),” he said.

Meanwhile, South Korea is engaging in discussions with the Trump administration on tariffs, non-tariff measures, industrial cooperation, and other trade issues, hoping to gain exemptions or reductions in U.S. tariffs on automobiles, steel, and other products.

This week, South Korea’s Minister for Trade Negotiations, Han-koo Yeo, visited Washington to hold trade talks with U.S. Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, as well as other officials from the U.S. government and Congress.

Yeo’s visit to the U.S. comes as the Trump administration announced on July 7th that it would impose a 25% tariff on South Korea starting on August 1st, giving South Korea three weeks to negotiate with the U.S.

Upon returning to South Korea on Thursday, Yeo proposed to the press that bilateral cooperation should be promoted in manufacturing, especially in the shipbuilding and semiconductor sectors, to reduce South Korea’s trade surplus with the U.S.

Chang Sung-gil mentioned that the South Korean government is formulating a strategy to determine what kind of shipbuilding partnership to establish with the U.S., and how South Korean companies can obtain preferential treatment under U.S. legislation aimed at promoting the development of the U.S. shipbuilding industry.

Regarding the news that the U.S. intends to cooperate with South Korea in the shipbuilding industry to jointly contain the CCP, Chinese Foreign Ministry spokesperson Mao Ning stated during a routine press conference on Friday, “Any agreement and negotiation should not harm the interests of third parties.”