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South Korea, which came to discuss the law, received a new ban, and China limited ammonium phosphate, which is playing a big game of chess

author:Money Explorer

Recently, the ROK has frequently encountered disputes in the international community, not only causing friction with Japan on issues such as history, trade, and security, but also disagreements with the United States over the sharing of defense expenses and the peace process on the peninsula.

Just as South Korea was trying to negotiate a solution with all parties, it was hit hard by China: China suspended export inspections of ammonium phosphate, which means that South Korea's fertilizer supply will face huge difficulties, and may even threaten South Korea's agricultural production and food security. Why did China make such a decision, and how much of an impact does this have on South Korea?

South Korea, which came to discuss the law, received a new ban, and China limited ammonium phosphate, which is playing a big game of chess

Background and reasons for ammonium phosphate restriction in China

Ammonium phosphate is an important raw material for chemical fertilizers and a kind of explosive substance. China is one of the largest producers of ammonium phosphate and the largest consumer. In recent years, due to domestic environmental protection policies, safety supervision, market demand and other factors, China's ammonium phosphate production capacity and output have declined, while domestic demand is growing.

In order to ensure domestic agricultural production and food security, China has suspended the export inspection of ammonium phosphate in order to give priority to meeting domestic demand, and the Chinese side has not given notice as to when it will resume. This move is also related to China's energy strategy, as the production of ammonium phosphate requires the consumption of large amounts of natural gas, and China is facing a tight supply of natural gas and rising prices.

South Korea, which came to discuss the law, received a new ban, and China limited ammonium phosphate, which is playing a big game of chess

In addition, China also needs to guard against the risk of ammonium phosphate being used in the illegal manufacture of explosives, and it is in China's national security interests to strengthen export controls on ammonium phosphate.

The impact and consequences of ammonium phosphate restriction in China

China's decision has had a huge impact on South Korea. As one of the largest importers of ammonium phosphate, South Korea is highly dependent on China as its main supplier, with a dependence of up to 95%. Therefore, if this measure continues into next year's busy farming season, South Korea will face a huge fertilizer supply challenge, which could have a significant impact on the country's agricultural production and food security.

South Korea, which came to discuss the law, received a new ban, and China limited ammonium phosphate, which is playing a big game of chess

The South Korean government has begun to urgently look for alternative sources, but with the already tight market supply of ammonium phosphate and the fact that prices in other countries are much higher than in China, the cost of fertilizer in South Korea will rise significantly, placing a greater burden on South Korean farmers and consumers.

At the same time, South Korea also has to face competition and pressure from other countries, such as India, Pakistan, Vietnam and other countries, which are also importers of ammonium phosphate, and are also affected by China's restrictions, they will also compete for ammonium phosphate resources in other countries, resulting in more tension and chaos in the international market for ammonium phosphate.

South Korea, which came to discuss the law, received a new ban, and China limited ammonium phosphate, which is playing a big game of chess

The purpose and intent of China's ammonium phosphate limit

China's decision to limit ammonium phosphate, although it is based on its own economic and security considerations, will inevitably have a certain political and diplomatic impact on South Korea. Relations between China and South Korea have seen twists and turns in recent years due to issues such as the THAAD anti-missile system, the Sino-US trade war, and the coronavirus pandemic.

China may take this opportunity to exert some pressure on South Korea to take China's interests and positions more into account on some sensitive and important issues, such as the Korean Peninsula nuclear issue, the Asia-Pacific strategy of the United States, and Japan's military rise, to align with or at least not confront China.

South Korea, which came to discuss the law, received a new ban, and China limited ammonium phosphate, which is playing a big game of chess

China may also want to take this opportunity to demonstrate its economic and diplomatic strength and influence, and send a signal to South Korea and other countries that China is a big country that cannot be ignored, and that China's decisions and actions will have a significant impact on the situation and pattern of the world, and that no country can underestimate or provoke China's interests and dignity.

epilogue

China's decision to limit ammonium phosphate has wide-ranging implications and far-reaching implications. This decision not only reflects China's economic and security needs and strategic considerations, but also poses a serious threat to South Korea's fertilizer supply and agricultural production. The move has also had a profound impact on China-South Korea relations and the international landscape.

South Korea, which came to discuss the law, received a new ban, and China limited ammonium phosphate, which is playing a big game of chess

South Korea is undoubtedly a victim in this incident, but it is also a participant, and while responding to the fertilizer crisis, South Korea needs to re-examine and adjust its foreign policy and strategy, maintain good communication and cooperation with China and other countries, seek common interests and goals, and maintain regional peace and stability.

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