At the 2026 World Artificial Intelligence Conference (WAIC), the Korea Innovation Center in China (KIC China) under South Korea's Ministry of Science and ICT organized a group of eight South Korean AI small and medium-sized enterprises (SMEs) to participate in the conference. This marked the first time that South Korean AI companies have participated in WAIC as a group. According to Yonhap News Agency, KIC China representative Kim Jong-moon noted that as China's technological innovation capabilities advance rapidly and market competition intensifies, South Korean firms should actively engage in Chinese tech expos. Their goal, he said, should be to "benchmark themselves against both global and Chinese markets, and quickly assess where their own technologies stand." This demonstrates that the sheer intensity of competition and the breakneck pace of development in China's tech industry have instilled a palpable sense of urgency among professionals in neighboring countries.

China-South Korea trade has expanded swiftly over the years. China has been South Korea's largest trading partner and South Korea is China's second-largest trading partner. In 2025, bilateral trade between China and South Korea amounted to $331.2 billion. South Korean companies have also made substantial investments in China.

Previously, some segments of South Korean public opinion showed a tendency to look down on China, even fabricating exaggerated rumors. Since China introduced visa-free entry policies, mutual understanding has improved to some extent. However, overall awareness in South Korea of Chinese technology companies remains quite limited.

China's supply chain today is no longer synonymous with "low cost." With a full understanding of China's current industrial development, Kim Jong-moon's comments highlight a critical insight: South Korean companies need to rapidly prototype and iterate products at low cost. Given South Korea's current R&D and manufacturing speed, it is becoming increasingly difficult to keep up with market demands. Global companies come to China not just for lower costs, but for speed; not just for manufacturing capabilities, but for an acceleration of innovation.

That is why, when South Korean firms come to conference in China, they need to do more than go through the motions. They must truly "benchmark." They should use the Chinese market's rigorous standards to gauge where their technology stands, whether their cost structures are competitive, and whether their iteration pace is adequate. Chinese market is large, open and highly efficient. Technologies and products that can survive here are competitive anywhere in the world.

Major South Korean companies have already grasped this logic. Samsung and SK Hynix, for example, treat China as a key component of their global capacity planning. China's supply chain still heavily relies on imports of high-end components such as semiconductors from South Korea. Yet, if South Korean firms wish to maintain their current standing, they must keep a close eye on the market and continuously upgrade their capabilities. They cannot assume that their existing position will remain secure. SMEs, in particular, need to stay sharp. Without visiting trade shows in China to see the landscape firsthand, they could fall behind without even realizing it.

Market competition follows the same rule for everyone: adapt and innovate, or be replaced. This is not a warning aimed solely at South Korean companies; Chinese firms are also thriving in this high-pressure environment of intense "involution." The reason Chinese industries are catching up with some of their South Korean counterparts is simply a difference in iteration speed. The way to change the situation is to step inside. South Korean industries need to immerse themselves deeply in China's industrial ecosystem, supply chains and innovation networks, and forge their own path through competition.

China and South Korea's industrial chains are deeply intertwined in a symbiotic relationship. China's vast market and complete manufacturing system, combined with South Korea's technological strengths in areas such as semiconductors and precision manufacturing, create natural room for complementarity. China's openness will only grow wider. Instead of worrying about being replaced, South Korean companies should view China as a competitive battleground - a place to find their bearings, identify partners and shape their future.

(The author is a researcher at the Technology and Strategy Research Institute.)