Xi Jinping’s visit to LG Display in Guangzhou draws industry attention

Chinese President Xi Jinping visits LG Display in Guangzhou, China. [Photo captured from People‘s Daily Online]

Chinese President Xi Jinping’s recent visit to a production site of South Korea’s LG Display Co. in Guangzhou has been the center of attention in the industry.

Some believe that Xi’s visit to LG Display could be seen as a message to Korean companies and other foreign investors that China is still open for business, while emphasizing the importance of the Chinese market amid escalating tensions with the U.S.

According to industry sources and foreign media reports on Thursday, Xi toured the LG Display’s factory in Guangzhou Wednesday. Chinese state-run newspaper People’s Daily reported that Xi visited LG Display’s production base and Chinese electric vehicle maker GAC Aion New Energy Automobile to understand current development in manufacturing and the promotion of corporate technological innovation and had exchanges with company representatives and researchers.

Xi, who visited Guangdong Province to meet with French President Emmanuel Macron on April 7, is currently inspecting the area. It is reported that Xi emphasized the friendship between China and South Korea during his visit to the LG Display factory.

LG Display established the Guangzhou factory in 2006 in partnership with a Chinese company. Since 2020, the factory has been producing 8.5th generation organic light-emitting diode (OLED) panels, with a maximum monthly production capacity of up to 90,000 units based on glass substrates.

This is the first time Xi has visited a foreign company since he took office for a third term last month. China, which saw only lower-than-expected 3 percent growth last year, has set a target of around 5 percent growth this year.

Amid the escalating tensions between the U.S. and China, Xi’s visit to a Korean company is drawing the attention of the industry. Some interpret this visit as China’s signal to Korean companies.