President Trump wielded both carrots and sticks in his global negotiations. The strategy towards China and the EU also directly burdens South Korean diplomacy. Hanmi Ilbo Synthetic

August 27, 2025, early morning (Korean time), the Oval Office of the White House. President Trump stated at a South Korea-US summit, "We can accept 600,000 Chinese students." Currently, there are about 270,000 Chinese students in the US. On the same night (late night of the 27th to early morning of the 28th Korean time), President Trump repeated the same remark at a White House cabinet meeting. His statement about doubling the number immediately drew international attention.

This somewhat unexpected remark shocked Trump supporters in the US and soon sparked questions about its reasons and background.

American universities heavily rely on tuition fees from Chinese students. This is why President Trump emphasized, "US universities cannot survive without Chinese students." While it appeared to be a magnanimous gesture for expanding exchanges, it was immediately met with backlash from within the conservative camp, arguing that it was "too lenient towards China."

However, there is something they missed. Another signal from the administration at the same time.

The Treasury Department and the Financial Crimes Enforcement Network (FinCEN) issued an alert regarding a Chinese money laundering network, and conservative commentator Gordon Chang argued, "We should block Chinese banks' dollar accounts through Section 311 of the Patriot Act." Section 311 is a powerful sanction tool that removes specific banks or countries from the dollar clearing system. In the past, North Korean, Iranian, and Russian entities suffered fatal blows due to this measure.

In other words, President Trump was wielding the stick of finance and security while simultaneously offering the carrot of exchange.

Shortly after the summit, President Trump issued another warning through his social media account. He pointed out that the EU's Digital Services Act (DSA) and Digital Markets Act (DMA) discriminate against major US tech companies and announced that countries adopting such regulations would face penalties such as additional tariffs and export restrictions on advanced technologies.

Although the remarks were initially aimed at Europe, they also carry significant weight for South Korea. The South Korean government is also pursuing online platform regulations, referencing the EU model. Ultimately, behind the carrot of expanded exchange, new sticks targeting financial and digital regulations have emerged simultaneously.

The Lee Jae-myung administration touted "increased investment" and "guaranteed exchange" as achievements from this summit. However, the reality was different. While the outward appearance of expanded exchange was sweet, it was accompanied by the heavier burden of pressure on financial, security, and digital regulations.

Trump's two-track strategy of simultaneously pursuing exchange and sanctions limits the options of the other party. While leaving room for negotiation with China, he declared zero tolerance for money laundering, espionage, and digital regulations. South Korea, despite gaining superficial achievements, appears to be facing a reality of narrowed diplomacy.

President Trump's "600,000 students" remark was ultimately not a pro-China gesture but part of his pressure tactics. The door to exchange was opened, but the doors to finance and digital were locked even more securely. This will be recorded as a symbolic scene revealing the reality of the Lee Jae-myung administration's diplomacy, which is boasting about this South Korea-US summit.

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