China’s Sudden Halt of Urea Exports to South Korea Highlights Risks of Supply-Chain Reliance

South Korea, reliant on China for its import supply chain, faces renewed concerns as China unexpectedly halted the customs clearance for exporting vehicle-use urea. This move has sparked panic buying in South Korea and raises questions about the role of political dynamics in this decision. On Nov. 30, the Chinese Customs Administration abruptly suspended the export of vehicle-use urea solutions to major South Korean companies. This decision affected urea solutions that had already passed export reviews, but were halted during loading, impacting Chinese subsidiaries of South Korean firms. The South Korean government, through various channels, asserts that this delay stems from domestic supply issues in China and is not politically motivated. Despite having a three-month domestic supply of vehicle-use urea, South Korea remains cautious. Past experiences, particularly the 2021 “urea shortage” triggered by similar export restrictions from China, prompt concerns about potential long-term implications and the need for countermeasures....