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A Study on Sustainable Development of Korea-China Trade

Author: HeMingLie
Tutor: YangFengZuo
School: East China University of Science and Technology
Course: Applied Economics
Keywords: Korea-China trading sustainable development FTA
CLC: F752.7
Type: Master's thesis
Year: 2012
Downloads: 84
Quote: 0
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Abstract


After the year 1992, Korea and China established diplomatic relations, economic and trade relations between Korea and China become more closer. As friendly neighbors the two countries acquired a great achievement on trading, investment and the cooperation on labor service. In this paper, first, we analyze the current situation and the characteristics between Korea and China, we consider that the proportion of processing trade is great; the most of the enterprises who import from Korea are Korean enterprises which established in China; the scale of trading of Korea and China are expanding, and the dependence between two countries is gradually enhanced; and the unbalance of the trade is continued. Secondly, this paper discuss the reasons of the trading development between two countries. We consider that there are five reasons make the development of two countries’trading. Diplomatic relations between Korea and China remove the obstacles of politics; the complementary industrial structure; Korea’s actively promotion of direct investment to China; the further opening of the Chinese market after the accession to the WTO; the sustained and rapid development of China’s economy. Then, analyze the influence of the Korea-China trading caused by the change of trading environment. We consider there are three influences. Korea-China trading relationship changed from complementary to the competition; the demand of China’s imports of intermediate products for processing trade is fall; the changes of China’s industrial policy. Finally, this paper propose the suggestions on how to enhance the sustainable development of Korea-China trading, and put the point on concluding Korea-China FTA, and propose the suggestions of making use of the industry policy to promote the Korea direct investment to China; enhance the international labor division and promote the adjustment of the trading structure; establish the economic and trading strategy relationship; resolve the problem of trade deficit between Korea and China, promote the trading cooperation in the area of annulus the Yellow Sea economy circle.And at the end of the paper propose the conclusion and prospect of the sustainable development of Korea-China trade.

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CLC: > Economic > Trade and Economic > States foreign trade > China's foreign trade > Trade relations with other countries
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