US urges South Korea to help counter China in shipbuilding sector

The US wants South Korea to join efforts to counter China's growth in shipbuilding via potential cooperation in the sector, a senior official from Seoul's trade ministry said on Friday.

"The United States feels a sense of crisis that China's market share in the shipbuilding sector is growing and is tapping Korea as a strategic partner," Trade Policy Director Chang Sung-gil said at a forum hosted by a lawmaker.

The US is asking Seoul to join measures to curb China in "other areas" as the "precondition" for bilateral cooperation in shipbuilding, he said, without elaborating.

He later clarified that he was referring to the shipbuilding sector as the potential area where the United States wants Seoul to join hands in terms of taking on China.

The US had also expressed reservations when it comes to cutting or eliminating industry-specific tariffs, such as those on automobiles and steel, Chang said.

Bilateral talks between countries should not harm a third party, China's foreign ministry spokesperson Mao Ning said when asked to respond to US efforts to rope in Seoul to counter China.

"China has always supported all parties in properly handling economic and trade relations and issues through dialogue and consultation, but no agreement or negotiation should harm the interests of third parties," Mao told reporters at a regular briefing.

The United States is asking Seoul to boost US investments and purchases of US energy and agriculture products in return for negotiating over reciprocal tariffs of 25 per cent, he said, but added, "there is a lot of political sensitivity in South Korea when it comes to expanding imports of agricultural products."

(Reporting by Hyunjoo Jin and Jihoon Lee; Additional reporting by Joe Cash in Beijing; Editing by Ed Davies and Shri Navaratnam)