Illustration: Liu Xidan/GT

TheMKS sports escalating tariff threats from the US have placed regional cooperation among China, Japan and South Korea at a critical crossroads. Only by working together to resist the immense pressure brought by the US tariffs and maintaining the big picture of Asian regional economic cooperation can partners in the Asian industrial chain enhance regional competitiveness and provide a sustained impetus for the stability of the Asian economy.

South Korea's Ministry of Trade, Industry and Energy said in a statement on Wednesday that it may investigate the potential dumping of Chinese and Japanese hot-rolled steel products, cautioning that a final decision is yet to be made, Bloomberg reported.

While this development may initially appear to be a regional trade dispute among China, Japan and South Korea, given the hit that global steel trade has taken recently, one cannot help but suspect that this is one of the ripple effects of US protectionist policies that are disrupting global supply chains.

Last week, US President Donald Trump announced to raise tariffs on steel and aluminum imports to 25 percent, which will take effect on March 4. South Korea, as the fourth-largest exporter of steel products to the US, is particularly vulnerable to these tariffs. 

For instance, as an AFP report indicated on Sunday, businesses, officials and workers in the city of Pohang "now fear a planned 25 percent tariff … could have devastating impacts - and major knock-on effects on South Korea's economy." Pohang is home to South Korea's major steelmakers. 

However, shifting the burden of US tariffs onto regional partners like China and Japan is not a sustainable solution. Such measures risk sparking trade frictions within the region, which could have far-reaching consequences for all parties involved.

The economic interdependence among China, Japan, and South Korea cannot be overstated. These three countries are deeply integrated into the Asian industrial chain. If steel costs rise because of anti-dumping measures, production costs for South Korean manufacturers in sectors such as vehicles, shipbuilding and machinery will inevitably increase, thereby undermining their global competitiveness. This "lose-lose" scenario highlights that it is unwise to resort to protectionist measures within the region.

Moreover, actions like anti-dumping investigations risk eroding the foundation of regional cooperation. US trade protectionism has already destabilized global supply chains, increasing uncertainty and trade costs. In this context, the deepening of economic ties among China, Japan and South Korea is more crucial than ever for regional economic integration. Any trade frictions among them could weaken the cooperative environment, posing a significant obstacle to the region's overall development.

Amid the rising tide of external trade protectionism, individual countries may face difficulties in resisting the impact of the US tariffs. However, succumbing to the allure of adopting protectionist measures themselves is a misguided option that will only exacerbate the situation. 

It is only through strengthened coordination and cooperation that the Asian supply chains can weather the storm of US tariffs. Given the economic scales of China, Japan and South Korea, they have important roles to play during the process. Their combined economic might, technological prowess and industrial capabilities make it possible for them to offset the adverse effects of trade protectionism.

When meeting with a visiting Japanese business delegation on Tuesday, Chinese Commerce Minister Wang Wentao called for closer regional coordination under the Regional Comprehensive Economic Partnership (RCEP), reviving stalled negotiations on the China-Japan-Korea Free Trade Agreement (FTA), and fostering a fair, transparent and predictable business climate to support corporate collaboration between the two nations.

There is indeed a growing necessity for resuming negotiations for the China-Japan-South Korea FTA, which would further deepen economic ties, lower trade barriers, and facilitate the free flow of goods, services, and production factors. This would not only reduce the cost of production but also enhance the overall competitiveness of their products in the global market, making it more difficult for the US tariffs to disrupt their economic development and ensuring regional economic stability.