January 10, 2025
SEOUL – China stands as one of South Korea’s most significant trading partners while also emerging as a formidable rival in domains where Korean firms have traditionally excelled in technological prowess and market competitiveness. This rivalry is vividly on display at this year’s CES technology trade show, running from Tuesday to Friday in Las Vegas, where Chinese companies are showcasing their rapid strides in the global technology landscape.
CES, an annual gathering of innovators, is not merely a showcase for Korea’s top tech giants such as Samsung Electronics and LG Electronics, it is also a barometer for policymakers, whose inertia in fostering cutting-edge industries risks leaving South Korea behind. This year, the spotlight falls on artificial intelligence — a transformative force driving productivity, reshaping customer experiences and unlocking new technological breakthroughs.
The AI-focused theme of CES 2025, “Dive In,” is set to highlight the progress of China’s technology sector, often dubbed “China tech,” in comparison to over 160 other participating nations. The scale of China’s presence at the exhibition is telling: Over 1,300 Chinese firms, including exhibitors from Hong Kong, have registered, second only to the contingent of 1,500 from the host nation, the United States.
In recent years, Chinese companies have commanded significant attention at CES, unveiling innovations across a broad spectrum — from AI and robotics to digital health and smart home technologies. This year is no different, as reports suggest their offerings will again underscore their growing technological acumen.
South Korean firms, meanwhile, face mounting pressure. Analysts in Seoul caution that the pace of Chinese advancements — despite US export restrictions and other geopolitical hurdles — continues to exceed expectations.
The stronger presence of Chinese firms at CES suggests that the paradigm has shifted. In the past, China depended largely on its price competitiveness even for technology products to expand its global market share. Now, China is also expanding its share in the premium technology market.
CES also underscores escalating tensions between the US and China. Amid reports about some Chinese exhibitors invited to the trade show being denied US visas, ByteDance was absent from the exhibitor list. Its subsidiary TikTok has joined the show, but the operator of the globally popular short-video app confronts the looming threat of a US ban unless it severs the Chinese ownership by Jan. 19. Other Chinese companies notably absent at CES include Baidu, Huawei Technologies and DJI.
Despite such obstacles, China’s influence at CES and in the broader technological arena continues to expand. Chinese firms are poised to unveil AI-powered innovations at this year’s exhibition, while South Korean companies like Samsung Electronics and LG Electronics will also debut AI-integrated solutions for the smart home.
Yet South Korea’s forays into AI innovation remain insufficient.
The Korean government, long reliant on the technological edge of its export-driven economy, must rethink its strategy in light of the growing gap with China. A recent report by Boston Consulting Group classified South Korea as an “AI steady contender,” ranking it below “AI pioneers” such as the US, Britain, Canada, Singapore and China. This second-tier status is a stark reminder that South Korea risks falling further behind in an arena critical to future economic and technological competitiveness, especially given the huge potential of AI innovation for a wide array of industries.
The roots of this stagnation lie in outdated regulatory constraints and inadequate government support. While China advances at breakneck speed, South Korea’s policy framework has struggled to keep pace.
To regain lost ground, policymakers must act decisively. This entails expediting the passage of AI-related legislation, fostering innovation through deregulation and providing robust incentives, such as subsidies and tax breaks. Only with a comprehensive and forward-looking strategy can South Korea hope to compete in the intensifying global AI race.