Status and Trends of China and South Korea Economic and Trade Prospects

1、Status and Trends of China and South Korea Economic and Trade Prospects Abstract: The emphasis on South Korea established diplomatic relations nearly 14 years in various fields have made great progress, particularly in the China-South Korea bilateral trade and economic relations and cooperation have

2、 developed steadily and achieved remarkable results, the two countries are each other's important economic and trade cooperation partners increasingly strengthened. China and South Korea in the telecommunications, automotive, IT, finance, labor and other fields has made great progress in the cap

3、ital, technology, environment and services, and other fields is rapidly on its way. -South Korea economic and trade cooperation between the two countries have also developed relevant policies and signed the relevant agreement. In the future economic and trade cooperation between China and South Kore

4、a will enter a new stage of comprehensive development. However, the accession to the WTO, China-South Korea economic relations from the past into the complementarity of the competition in more areas, which requires both countries to further adjust the economic structure and policies to avoid excessi

5、ve competition and unnecessary friction and seek bilateral economic relations are moving toward broader cooperation in the field direction. Key words: South Korea economic and trade cooperation problems with the proposed   Abstract: Heavy Han both countries establish diplomatic relations in the

6、 recent 14 years, has all made the very big progress in each domain cooperation, in particular the Chinese and South Korean both sides economics and trade relations and each cooperation developed with steady steps, obtain the amazing result, both countries day by day strengthened mutually for the im

7、portant economics and trade partner relations.China and South Korea in domain and so on telecommunication, automobile, IT, finance, service cooperations have made the very big progress, in domain and so on fund, technology, environment and service cooperations also rapidly develops.The China and Sou

8、th Korea have also formulated the corresponding policy for both countries economics and trade cooperation, has signed the related agreement.The next Chinese and South Korean economics and trade cooperation will certainly be able to enter a full scale development the new stage.But, after being WTO en

9、try, the Chinese and South Korean economy relations supplementary became by the past in the more domain competition, this needed both countries further to adjust the economic structure and the policy, avoided competing excessively and the nonessential friction, sought both countries economy relation

10、s to face the broader domain cooperation direction to develop. Keywords: Chinese and South Korean Economics and trade cooperation Existence question Suggestion          1. Trade and economic relations are characterized by       &#

11、160;  1.1 The rapid growth of bilateral trade. China and South Korea bilateral trade from the 20th century, late 80s to the two countries established diplomatic relations in 1992 after entering the fast growth stage. From 1992 to 2004, 10 years, bilateral trade by 5.03 billion U.S. dollars when

12、 diplomatic relations in 2003 increased to 62.34 billion U.S. dollars, an increase of nearly 18 times the average annual increase of nearly 30%. This growth rate is not only much higher than South Korea's foreign trade over the same period the average annual growth rate of 8%, also higher than t

13、he corresponding average annual growth of 17% of China's foreign trade level. According to the Ministry of Commerce statistics, in 2004 bilateral trade volume between China and South Korea break through 90 billion U.S. dollars, reaching 99.56 billion U.S. dollars, compared with 2003 growth of 42

14、 5%. Among them, China's exports 27.318 billion U.S. dollars and imports 62.249 billion U.S. dollars, respectively, year on year growth of 38 4% and 44.3%. According to Chinese customs statistics, in 2005, China and South Korea bilateral trade amounted to 111.93 billion U.S. dollars, up 24.3%, a

15、head of three-year target to achieve 100 billion U.S. dollars. Among them, China's exports 35.11 billion U.S. dollars and imports 76.82 billion U.S. dollars, respectively, year on year growth of 26 2% and 23.4%; 41.71 billion U.S. dollars China's trade deficit, an increase of 21.1%. If not i

16、ncluding the European Union and ASEAN, South Korea is China's fourth largest trading partner, fourth largest export market and third largest import source; China is South Korea's largest trading partner, largest export market and largest trade surplus source.      &#

17、160;   The smooth bilateral trade and rapid development of the first with the two government support is not without relationship. After the establishment of diplomatic relations between the two countries have signed the "Sino-South Korea trade agreement the government", "Inv

18、estment Protection Agreement", "Maritime Agreement", "Avoidance of Double Taxation and Prevention of Tax Evasion Agreement", "Sino-South Korea Fishery Agreement on Government" and a range of government agreement, and the establishment of China-South Korea Joint Com

19、mittee on economic, trade and technological cooperation, China-South Korea Industrial Cooperation Committee, China-South Korea Investment Cooperation Committee, the substantive session of Sino-South Korea trade and other cooperation mechanisms, the development of bilateral economic and trade have cr

20、eated favorable conditions. Second, the two economies in the factors of production, industrial structure and products highly complementary areas also led to further growth in trade. In addition, China and South Korea in recent years, with a good development momentum of the economy has a lot to. Chin

21、a's economic growth, not only for their respective countries provides a rich supply of exports, but also for their respective imports provide a broad market.          1.2 import and export commodity structure has gradually changed to the high-class. Over t

22、he years, the majority of China's Korean exports are low value-added resource-intensive and labor-intensive products, especially raw materials and finished products mainly such as textile raw materials and products, base metals and products, minerals and farm produce. With the pace of China'

23、s utilization of foreign investment and industrial structure adjustment and the continued upgrading of the South Korean export structure is also continuously optimized. Since 2000, the Electrical and audio equipment and components in China to South Korea's largest export commodity. From 2004, Ch

24、ina's main export to South Korea's six major product point of view, substantially more than 2003-year level. Among them, the highest growth was base metals and products, 70% annual growth over the previous year, followed by mechanical and electrical audio equipment and components, but also 5

25、0% annual growth over the previous year.          In 2005, China's imports from South Korea has grown rapidly, which is also the largest increase in six categories of goods. At present, the import and export commodity structure between the two countries fu

26、rther from the type of raw materials to finished products in the transformation from low value to high value-added direction to enhance bilateral economic and trade relations have entered a new stage of the level of division of labor.          South Korean exp

27、orts to China, the electronic products, iron and steel products, general machinery exports of high value-added volume of industrial products increased steadily, textile raw materials and their products from the first one in 1995, a gradual decline, by 2002 had dropped to fifth place, while machinery

28、 and electronic products since 1998 has been the first one. In 2003, China's textile raw materials and products, mechanical and electrical audio equipment and parts, base metals, mineral products, chemicals and grain products accounted for six of China's total exports to South Korea for 70%

29、of the six categories of goods to South Korea last year compared with growth of export and average more than double-digit, of which 41% growth in mechanical and electrical audio equipment.          1.3 China and South Korea continue to expand mutual investment

30、.          1.3.1 South Korean investment in China is accelerating. South Korean investment in China started in 1985, to 1992, the South Korean investment in China (except for 1998 and 1999, the Asian financial crisis a continuous decline in foreign) into the r

31、apid growth stage. According to South Korea to statistics, foreign direct investment in South Korea in 2004 amounted to 12.7 billion U.S. dollars, of which investment in China surpassed the United States and Japan. China has become South Korea's largest foreign investment destination. Chinese Mi

32、nistry of Commerce in 2004 the introduction of foreign investment statistics also show that China imported from the Korean companies actually used direct investment in the amount of the highest. The South Korean government decided to provide substantial financial support for the next four years, ven

33、ture capital, which will set off South Korean companies to invest. "Investment in China" has become a focal point for Korean companies and the slogan.          1.3.2 China's investment projects in South Korea grew rapidly. Korean investment in Ch

34、ina's smaller, is still in the initial stage. As of the end of September 2001, Chinese enterprises invest in South Korea reported a total of 2554, of which South Korea in 2000 China's direct investment in 1165, accounting for South Korean foreign-funded projects to use 27.3%, ranking first i

35、n number. The past two years, China's large enterprises have increased investment in South Korea, in October 2002, Shanghai Automotive Industry Group will contribute 9.7 million U.S. dollars acquisition of South Korea's GM Daewoo Auto Technology, Inc. 10% stake, in Shanghai the largest amoun

36、t of corporate mergers and acquisitions in overseas projects . At present, many enterprises, especially private enterprises optimistic about South Korean market, through the "going out" strategy of opening up the same time, accelerate the pace of investment in South Korea. In 1999, Chinese

37、 enterprises invest in South Korea in 1998 compared with an increase of the amount of 23.8% in 2000 year on year increase of 18.2%. With China's multi-level, comprehensive and wide-ranging opening pattern formation, to expand investment in Korea will become an inevitable choice for Chinese enter

38、prises. In addition, China will be under the rules in the WTO, the enterprise-based, and more to strengthen the cooperation between enterprises with South Korea to open up new areas of cooperation, the development of a variety of cooperation, to promote a comprehensive cooperation and exchanges.

39、60;        2. South Korea economic and trade cooperation problems          2.1 Trade and uneven development, China is a serious trade deficit. According to Chinese customs statistics, China and South Korea established diploma

40、tic relations in 1992, since the rapid development of China-South Korea trade, Korean exports to China doubled, while China is a serious deficit year after year, and there is a rising trend. From the two countries established diplomatic relations in 1992, when the 220 million U.S. dollars all the wa

41、y up, in 1997 topped 5.0 billion mark in 2000 reached a record high, after 2002 reached 13.077 billion U.S. dollars in one fell swoop in 2003, breaking 20 billion U.S. dollars in 2004 and even exceeded 30 billion U.S. dollars reached 34.431 billion U.S. dollars, compared with 49.5% increase in 2003.

42、 Since 1998, China's trade deficits year after year over year China's total exports to South Korea since the establishment of diplomatic relations to the end of 2001, the amount of the accumulated trade deficit with South Korea has more than 600 billion U.S. dollars. In 2002, the Sino-South

43、Korea trade deficit, China's trade deficit reached 13.017 billion U.S. dollars. 2003 is as high as 23.014 billion U.S. dollars. The substantial increase in trade deficit with South Korea the main reasons: First, as China's rapid economic growth and the South Korean companies to increase dire

44、ct investment in China, China's rapid expansion of imports from South Korea; Second, bilateral trade in the vertical intra-industry trade plays a dominant the role of Chinese imports of raw materials from South Korea was partially processed into finished products sold after the buy-back South Ko

45、rea or a third country. All this has seriously affected the Chinese goods from entering the Korean market, hindering the normal balanced development of bilateral trade. For the trade deficit with China and South Korea, the Chinese government has made the South Korean government on many occasions, it

46、 has not been resolved. This is mainly due to the Korean government did not take a practical policy, which led China to South Korea's trade deficit further widened.          2.2 The customs duties, non-tariff barriers serious, South Korea to implement trad

47、e protection. South Korea currently provides for 27 kinds of agricultural products and light industrial products, imposition of high tariffs on imports of adjustment, of which 17 strains of mainly or largely imported from China, such as garlic, vegetables and other agricultural products imported fro

48、m China a long time, but by its high tariffs on impact (garlic tariffs 30%), China's exports of these products to South Korea has become very difficult. In addition to tariff measures taken by the South Korean government, but also frequently to enable non-tariff measures, such as anti-dumping, t

49、echnical barriers to trade (TBT), inspection and quarantine measures (SPS) and some other discriminatory practices, prevent Chinese goods to enter the Korean market. Technical barriers to trade heavily on Chinese goods lose Korea poses a serious threat. Influenced by the South Korean technical barri

50、ers to trade goods include: agricultural products, aquatic products, livestock, food and food additives, drugs (especially Chinese medicine), etc. can not be normal exports to South Korea. South Korea's import restrictions on the above products primarily to test, quarantine and safety standards

51、as the main tools (such as South Korea's testing of pesticide residues in the target up to hundreds of items), and quarantine and inspection on the import of Chinese products adopted a discriminatory policy, such as China's agricultural products carried out according to sampling rate of 6%,

52、while the United States and other countries from similar products sampling rate is only 3%. Such discriminatory measures also reflected in South Korea's import of Chinese product quality and specifications of the tender requirements, the conditions for payment of the bonds is also very harsh. &#

53、160;        2.3 "market economy" and "non-market economy" controversy. China is a market economy, for three reasons: First, the allocation of resources is not a major in; second is the equal of the main market is the variety of ownership enterpr

54、ises, such as the Central African GDP has reached 70% of the state-owned, state-owned enterprises now have to operate according to market rules has become the main body of the market economy; third of China's trade environment to be an overall improvement, including the legal environment, the th

55、ree foreign investment law has been modified, is developing anti-monopoly law, WTO Director-General Mr. Supachai spoke highly of China's law a large-scale changes. However, at present the discretion of South Korea of dumping of Chinese goods still use "non-market economy" standard, via

56、 a third country prices as a reference. For example, Chinese exports to South Korea of dumping disposable lighters, when put in charge of Thailand as a reference, which is neither in line with the current development of China's market economy the fact that the unfair treatment of Chinese goods,

57、but also hindered the healthy economic and trade relations between China and South KoreaDevelopment. Reposted elsewhere in the paper for free download http:/          3. The promotion of China-South Korea economic and trade cooperation proposals   &#

58、160;      3.1 to solve the trade deficit with China and South Korea trade. Current Sino-South Korea trade, the more prominent issue is China's huge trade deficit. Although there is a deficit in trade and economic exchanges is normal and can not blindly pursue absolute ba

59、lance, but the long run, will not be conducive to sustained and stable development of border trade. At present, Korea has become the world's few foreign exchange reserves, one of the largest countries and regions, have the ability to increase imports from China so that bilateral trade in expandi

60、ng access to balanced development. The increase in exports to China, but also conducive to South Korea to buy more goods, so as to enhance the enthusiasm of both sides, in order to raise bilateral trade more room for development. The Government should strengthen dialogue and consultation, focusing o

61、n long-term development, in promoting the further development of bilateral trade at the same time, changing the situation of serious imbalance of bilateral trade, so that South Korea realizes that: Welcome to Chinese goods from entering their markets, and efforts to increase imports from China, in a

62、 balanced manner will help solve the trade deficit between China and South Korea and lasting cooperation. South Korea is now the world's few foreign exchange reserves, one of the largest countries and regions, so South Korea has the ability to increase imports, in particular, to increase imports from China to resolve bilateral trade deficit with China's long-term high level issues. China's exports has increased, have the ability to buy more