The Economic Freedom Salon, Part 2, focuses on China's trade diplomacy, specifically the recent rumors about a ban on the use of iPhones by Chinese civil servants and the export of urea water. The episode features a discussion with Seonghwan Eun, a professor in the Department of Economics at the University of Seoul, who provides insights into the potential impacts of these actions on the Korean economy.
The episode begins with the reporter, Kim Hye-min, introducing the topic and the guest, Professor Eun. She discusses the recent rumors about China banning the use of iPhones by its civil servants and the export of urea water, two actions that have raised concerns about their potential impact on the Korean economy.
The professor explains that these actions could be influenced by external factors, such as the trade conflict between the United States and China, and the strong sanctions against Huawei. He also discusses the potential impact on Apple's sales, particularly in Korea, and the potential damage to Apple's supply chain, as many parts of the iPhone are produced in Korea.
The episode concludes with a discussion on the potential impact of China's control over urea exports on Korea's agricultural sector. Professor Eun explains that while Korea is a significant importer of urea from China, the impact of the export controls would depend on the actual level of control implemented by China.
Overall, the episode provides a detailed analysis of the potential economic impacts of China's recent trade actions, particularly on Korea's technology and agricultural sectors. It emphasizes the importance of diversifying economic partners and maintaining technological competitiveness to mitigate potential risks.
1. The discussion is about China's trade diplomacy and its impact on the Korean economy, focusing on recent incidents such as the rumored ban on the use of iPhones by Chinese civil servants and the export of urea water.
2. The report mentions that China has issued orders through at least three of its ministries to stop the use of iPhones by government officials, state-run companies, and government-funded institutions.
3. The report suggests that the ban on iPhones could affect about 56 million people, including executives and employees of state-run companies.
4. The report also discusses the potential impact of the ban on the Korean economy, noting that Korea is a significant market for Samsung phones.
5. The discussion touches on the fact that many parts of the iPhone are made in Korea, and a ban could lead to significant damage to the Korean parts industry.
6. The report mentions that the cost of making an iPhone in China is relatively low, with the biggest added value being software.
7. The report suggests that the ban on iPhones could lead to a situation where China becomes somewhat isolated, and the United States may take action against it.
8. The report mentions that there is a possibility of a trade retaliation from the United States if China officially admits to banning the use of iPhones.
9. The report discusses the potential impact of the ban on the Chinese economy, noting that there are about 100 million Apple employees in China.
10. The report mentions that the Chinese government may be controlling urea exports for the first time in two years, which could lead to a rise in prices and a shortage of supply and demand.
11. The report discusses the different types of urea, noting that it can be used in vehicles, ships for industrial use, and as agricultural fertilizer.
12. The report mentions that the Chinese government has not explicitly stated that it is controlling urea exports, and that some companies are reducing their export volume due to the potential for a shortage of internal volume.
13. The report discusses the potential impact of a ban on urea exports on the Korean economy, noting that Korea is a significant importer of urea.
14. The report suggests that the ban on urea exports could lead to a situation where supply and demand are not possible, which could result in a significant increase in price.
15. The report mentions that the Korean government is taking steps to prepare for potential shortages of difficult-to-obtain elements, such as rare earths.
16. The report discusses the potential impact of the trade conflict between the United States and China on the Korean economy, noting that Korea has benefited a lot from China but has also become excessively dependent on it.
17. The report suggests that to help the Korean economy, it should diversify its imports and export lines and create a variety of consumers and business partners.