President Lee Jae Myung is making a high-stakes gamble, courting China for its economic power while simultaneously managing an angry public and a hostile North Korea. The recent state visit of Chinese President Xi Jinping brought all these tensions to a boil, revealing the potential downsides of Lee’s strategy.
The gamble involves balancing domestic sentiment against economic necessity. As Lee hosted Xi, hundreds of protesters rallied in Seoul, furious over what they see as China’s growing dominance. Lee, who has tried to crack down on such protests, is betting that the economic benefits will outweigh the political costs.
Part of the gamble was also to use the closer ties with Beijing to influence Pyongyang. Lee urged Xi to help restart dialogue with North Korea. This bet failed spectacularly. North Korea responded with a swift and public rejection, calling the entire idea a “pipe dream” and humiliating Lee’s administration.
The U.S. alliance further complicates this gamble. After a recent visit from U.S. President Trump, Lee had to raise sensitive U.S.-linked topics with Xi, including the 2017 THAAD missile system dispute and Chinese sanctions on a U.S. firm. This shows that cozying up to China does not free Seoul from its obligations to Washington.
For China, it was a straightforward visit. President Xi called for “mutual respect” and his state media celebrated seven new economic agreements, including a currency swap. Beijing appears to have won its economic points, while Lee is left to deal with the diplomatic and domestic fallout.