A Chinese state-run daily has insisted that the expansion of South Korea’s semiconductor industry through increased exports to China requires the mitigation of U.S. political interference.

In an article published on Saturday, the Global Times said Seoul’s intention to vastly expand its chip industry despite the U.S.’ intensifying chip war is understandable, noting the recently unveiled plan to establish a “semiconductor mega cluster” in Seoul.

The newspaper said that if production increases, South Korea may export more to the Chinese market, but to do that, it must continue to limit the impact of U.S. political interference.

The report said that mutually beneficial cooperation between the chip industries of the two Asian neighbors has brought practical benefits to South Korean companies and created significant opportunities for industrial development.

The paper went on to say that Washingtons’ attempts to draw Seoul into its chip stranglehold against Beijing has inflicted significant losses for South Korean chipmakers, noting that the country suffered its first trade deficit with China in 31 years in 2023.

The paper said that although the global semiconductor industry is about to rebound, the key to further recovery of the South Korean semiconductor industry lies in eliminating and reducing the impact of U.S. chip trade restrictions and the fragmentation of the Asian supply chain.