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Samsung, SK hynix caught in US-China trade feud By Baek Byung-yeul Samsung Electronics and SK hynix have found themselves caught in the middle of the escalating U.S.-China trade war as they are facing growing pressure from Beijing not to join Washington's sanctions on Huawei, according to industry analysts Monday. Korean tech companies including the two semiconductor giants are facing an increasingly uncertain business outlook as they struggle to find the middle ground between the world's two largest economies. On Saturday (U.S. local time), the New York Times reported that Chinese government officials reportedly summoned officials from tech firms including Samsung and SK hynix on June 4 and 5 and warned them of "dire consequences" if they joined the U.S.-led boycott of Huawei. Officials from Samsung and SK hynix declined to comment on whether their executives were actually summoned, citing the sensitivity of the matter. The move came after Beijing's recent announcement that it will set up a blacklist of unreliable companies in retaliation to the ban on Chinese tech giant Huawei. Given U.S. Ambassador to Korea Harry Harris recently urged local tech firms to join the U.S.-led Huawei boycott, industry officials said Korean companies are increasingly at risk of becoming collateral damage in the trade war between the world's two largest economies. "It is getting harder to avoid being sandwiched by the trade war between the U.S. and China because the ongoing dispute is a geopolitical and economic matter," an official at a local tech company said. "Also, there are increasing chances that Korean companies will experience a slowdown in their businesses." He also said Samsung and SK hynix would be unable to cut themselves off from Huawei as they supply it with parts worth about 10 trillion won ($8.4 billion) annually. An industry analyst concurred that the escalating U.S.-China trade has clouded the outlook for Korean companies because they are heavily dependent on both markets. "For Korean companies, both the U.S. and Chinese markets are important. It will be difficult for them to pick and choose which side they would like to be a part of," said Mun Byung-ki, a senior researcher at the Institute for International Trade at the Korea International Trade Association. The researcher said it was important for them to make a strategic decision. "China has its strength in manufacturing and hardware-based industries and the U.S. has the advantages in software and technological capabilities, so it is hard to tell which side the companies have to opt for. As the circumstances surrounding the Korean companies are different, they have to come up with the appropriate strategic decision," the researcher said.