Takaichi's Rearmament vs. Xi's Resource Blockade... What Is Sandwiched Korea's Escape Route? | Jeon Byeong-seo, Director of China Economic and Financial Research Institute

Summary

Jeon Byeong-seo, Director of the China Economic and Financial Research Institute, joins host Yeo Do-hoon to analyze the Japan-China-US strategic conflict, Takaichi's rearmament push, Xi's resource leverage, and Korea's supply-chain dilemma. He argues China's rare-earth control is a durable choke point, Chinese equities and AI/semiconductor stocks are attractive, and Korea's memory-chip duo remains a key beneficiary of AI demand. The discussion also covers China's 2026 domestic-demand policy, Japan's need for specific earnings stories, and risks around Taiwan, tariffs, and Korean battery supply chains.

• Japan-China tensions are framed as part of a broader US-China power struggle, with Japan seeking rearmament and China using trade and resource leverage.
• China's rare-earth processing dominance is described as a long-term US vulnerability with no quick substitute.
• China's 2026 policy is expected to prioritize growth, domestic demand, and investment-in-people services such as education and eldercare.
• Chinese equities and AI/semiconductor stocks are highlighted as relatively cheap and increasingly led by domestic tech champions.
• Korea's semiconductor strength, especially Samsung Electronics and SK hynix, is presented as a key national advantage and foreign-investor destination.
• The speaker cautions that Japan requires specific earnings stories rather than a broad recovery trade, and that Taiwan conflict, tariffs, and Korean battery-supply dependence remain risks.
• The interview ends with a discussion of information advantage and deeper research in a noisy market.