Seoul’s Squeeze Play: Caught Between an American Ally and a Chinese Giant

South Korea is caught in an escalating geopolitical squeeze play, trapped between its American security guarantor and its powerful Chinese economic partner. This dynamic was thrown into sharp relief during Chinese President Xi Jinping’s state visit, a trip that forced President Lee Jae Myung to confront these contradictions head-on.
The visit, which followed closely on the heels of one by U.S. President Trump, perfectly encapsulated Seoul’s dilemma. As Lee hosted Xi, he was not only managing a complex international agenda but also facing domestic backlash. Hundreds of protesters rallied in the capital, demanding a tougher stance against Chinese influence, a sentiment Lee has struggled to contain.
In his meetings with Xi, President Lee attempted to thread the needle. He pushed for Chinese cooperation in restarting talks with North Korea, a critical security goal for Seoul. This diplomatic overture, however, was swiftly and publicly rejected by Pyongyang, which labeled the idea a “pipe dream,” leaving Lee with little to show for his efforts on that front.
Simultaneously, Lee had to address the grievances of his U.S. ally. He raised the contentious 2017 THAAD missile system dispute, which Beijing still views as a threat. He also discussed Chinese sanctions on a U.S.-linked company, illustrating how Seoul is often caught in the crossfire of U.S.-China trade and security disputes.
While the political discussions were fraught with tension, the economic track was more positive. Chinese state media celebrated seven new economic agreements, including a currency swap, highlighting the pragmatic core of the relationship. President Xi’s call for “mutual respect” and “friendly consultation” underscored Beijing’s desire to stabilize relations, even as the underlying strategic competition with the U.S. puts Seoul in an ever-more difficult position.