20 Years of the Korea-China Economic Relationship: Retrospect and Prospect

Philip Pilsoo Choi, S. No, Min Suk Park
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Abstract

Korea-China trade passing through the initial growth period (1992-1997), adjustment period (1998-2001), and second growth period (2002-2005), is now passing through its fourth phase, the stabilization period (2006-present). Although the scale of trade has increased, there is limited accessibility of Korean exports into the Chinese domestic market while processing trade still takes large share. - In the case of Korea’s trade with China, there is a strong connection with investment in China as an investment dependent export structure. However, following from the recent strengthening of local procurement by Korean business subsidiaries in China, there has been a decrease in the export inducement effect through investments. - Despite Korean shares in the Chinese import market holding second place after Japan at 9.6% as of 2011, shares in the domestic market are lower at 6.3% following Japan (11.3%), the US (9.1%), and Germany (7.5% in 2010). Korea’s investment in China, passing through the exploratory period (1989-1991), entrance period (1992-1997), adjustment period (1998-2001), growth period (2002-2008), and transition period (2009-present), has been diversified both in industry and region. However, there has been a recent decline. - After China’s admission to the WTO, the goals of Korea’s investment in China has changed from low-wage toll processing to the domestic market. In regards to industries, there has been a gradual transition from early light industries to heavy chemical industries, as well as a recent increasing focus on service industries. - In order to energize recent inactive investment, there is a need for policies that work to (a) cooperate to expand pioneering investments into the domestic market and (b) move the existing bases of production to the inland mid-western regions that are still needed by toll processing businesses, (c) establish and utilize new Korean industrial complexes, or (d) support the small and medium-sized enterprises which have business items to invest in China. There is an emerging need by both Korea and China to create a paradigm of mutually beneficial cooperation by concluding the FTA and uncovering new cooperative fields. - The reduction of tariffs and overcoming of barriers to entrance into the service industry, through the Korea-China FTA, can provide significant momentum for advancement into China’s domestic market. - In the finance and monetary area, Korea-China cooperation has not yet reached a level of real economy, however, in the future, if there is an increase in the international use of the RMB and a lowering of the barriers to the Chinese financial market, there will be a great increase in the possibility of actual cooperative endeavors. - In Korea’s 17 future growth engine industries and China’s 7 strategic industries, because of the abundance of overlap, there is a need to make a specific cooperative strategy according to areas where the two countries have its own strength and where the two countries experience comparative disadvantage in the world market.
韩中经济关系20年:回顾与展望
韩中贸易经历了初期增长期(1992 ~ 1997年)、调整时期(1998 ~ 2001年)、第二次增长期(2002 ~ 2005年),现在进入了第四阶段——稳定时期(2006年至今)。虽然贸易规模有所增加,但韩国出口产品进入中国国内市场的机会有限,加工贸易仍占很大比重。-就韩国与中国的贸易而言,作为一种依赖投资的出口结构,韩国与中国的投资有着密切的联系。但是,随着最近韩国企业在中国的子公司加强当地采购,通过投资的出口诱导效果有所下降。〇2011年,韩国在中国进口市场的占有率为9.6%,仅次于日本,居第二位,但在国内市场的占有率为6.3%,落后于日本(11.3%)、美国(9.1%)、德国(2010年为7.5%)。韩国对华投资经历了探索期(1989-1991年)、进入期(1992-1997年)、调整期(1998-2001年)、成长期(2002-2008年)和过渡期(2009年至今),在行业和地区上呈现多元化。然而,最近出现了下降。——中国加入世界贸易组织(WTO)后,韩国对华投资的目标从低工资的收费加工转变为国内市场。在工业方面,从早期的轻工业逐步过渡到重化学工业,最近也越来越重视服务业。-为了激活最近不活跃的投资,有必要制定以下政策:(a)合作扩大对国内市场的开创性投资;(b)将现有的生产基地转移到收费加工企业仍然需要的中西部内陆地区;(c)建立和利用新的韩国工业园区;(d)支持有业务项目的中小企业在中国投资。韩中两国迫切需要通过签订自由贸易协定和开辟新的合作领域,创造互利合作的典范。——通过韩中自由贸易协定(FTA)降低关税和克服服务业准入障碍,将成为进军中国国内市场的重要动力。——在金融货币领域,韩中合作虽然还没有达到实体经济的水平,但如果今后人民币的国际使用增加,中国金融市场的壁垒降低,韩中合作的可能性就会大大增加。——在韩国的17个未来增长动力产业和中国的7个战略性产业中,由于重叠较多,有必要根据两国的优势领域和两国在世界市场上的相对劣势领域制定具体的合作战略。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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