China Turns To K-Pop For First Time Since 2016 To Spur Consumption, Strengthen Ties With South Korea Amid US Trade Tensions

In a strategic move to stimulate domestic consumption, China is reportedly turning to the K-pop industry amid its ongoing trade war with the United States and a weakening domestic market.

What Happened:  China is set to host K-pop group Epex for a concert in Fuzhou, Fujian province, on May 31. This event marks the first performance by an all-Korean idol group in mainland China since 2016. Additionally, South Korea’s longest-running K-pop event—the Annual Dream concert- is set to take place on September 26 in China’s Hainan province, reported CNBC.

These developments suggest a possible relaxation of China’s unofficial ban on K-pop acts, a shift that CGS International Securities Hong Kong research analyst Oh Jiwoo refers to as a “structural turning point” for the industry.

In February, CGS stated China’s concert market, which expanded by 189% from $2.9 billion in 2019 to $8 billion in 2024, could see a significant boost in 2025 if the country lifts the unofficial ban on South Korean artists.

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Why It Matters: Recently, China’s Ministry of Culture and Tourism released a notice encouraging cultural events, such as concerts and music festivals, as per CNBC. The K-pop sector, unaffected by cross-border tariffs, is viewed as a strategic initiative to boost discretionary spending in tourism, hospitality, and local commerce.

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According to analysts, China’s softened approach to K-pop also serves a diplomatic purpose, aiming to rebuild relationships with neighboring countries, such as South Korea, amid trade uncertainties. This shift may help revive K-pop’s fan-driven revenue streams in the region and promote regional goodwill.

Notably, President Donald Trump earlier this week indicated about ‘potential’ trade deal with South Korea, besides India and Japan.

On Friday, China’s Commerce Ministry said that the country is assessing a U.S. offer to discuss the crippling 145% tariffs imposed by Trump. This move towards de-escalation comes amid China’s manufacturing activity contracting for the first time in three months.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.