Japan, Taiwan, South Korea: AI euphoria masks Chinese competitive shock (legrandcontinent.eu)

• Chinese industry moves up the value chain – trade surpluses of Japan, Taiwan, and South Korea shrink.
• AI boom masks structural losses: semiconductor demand drives growth, but traditional sectors decline.
• Bank of Korea warns of export concentration in IT – other industries face Chinese competition and US trade war.

"The rise of Chinese industry is increasingly pressuring Japan, Taiwan, and South Korea. Trade surpluses with China are declining as Beijing moves up the value chain in automobiles, chemicals, and machinery. The AI boom, driving demand for semiconductors, temporarily masks these structural losses. Hyundai sold only 128,000 vehicles in China in 2025, down from 502,000 in 2020. Toyota maintained 1.8 million. The Bank of Korea warns of export concentration in IT."