South Korea and China Signal Reset in Bilateral Relations

The Beijing Reset: A Strategic Pivot

On January 5, 2026, President Lee Jae-myung and President Xi Jinping formalized the "full restoration" of bilateral ties in Beijing. This summit marks the end of nearly a decade of strategic friction following the 2017 THAAD deployment. Both nations have agreed to institutionalize high-level communication and prioritize a "Strategic Cooperative Partnership" built on economic pragmatism and regional stability.

Agreements Signed 15 Cooperation Documents

Bilateral Trade Volume (2024)

$273B

Resilient baseline for the 2026 restoration

Strategic Growth Sectors

The summit prioritized industries that align with demographic shifts and the fourth industrial revolution.

🤖
AI & Digital Transformation
Joint R&D and ethical governance standards
🌱
Green Energy & Bio-Pharma
Supply chain security for renewables
👵
The "Silver Economy"
Healthcare and tech for aging populations

Agreement Distribution

Breakdown of the 15 signed documents by focus area

Key Insight: Over 60% of new agreements focus on Industrial Chain Stability and SME Support, moving bilateral cooperation into the high-tech value chain.

Geopolitical Equilibrium

President Lee faces the "Dual Track" challenge: maintaining the U.S. security alliance while restoring economic and diplomatic ties with China. The summit emphasized "Harmony without Uniformity."

Strategic Autonomy

Seoul aims to ensure that its military cooperation with the U.S. is not viewed by Beijing as a containment strategy.

One-China Principle

Lee reaffirmed respect for Beijing's core interests, a prerequisite for the full restoration of economic exchange.

Strategic Alignment Index

Remaining Diplomatic Friction

While relations have "reset," structural challenges remain that could impede long-term stability.

High Risk
NK Nuclear Issue

Divergence in "denuclearization" terminology remains a gap.

Moderate Risk
Nuclear Submarines

Beijing remains wary of high-tech naval upgrades in the ROK.

Low Risk
Maritime Disputes

Managed via new vice-ministerial level talks.

Data sourced from 2026 Beijing Summit Diplomatic Briefs and Trade Statistics.

Infographic by Beyond the Horizon ISSG

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