China South Korea Economic And Trade Cooperation Goes To A New Stage

According to the static estimation of bilateral trade volume in the first half of two 15, the Chinese customs will enjoy twenty-six billion dollars of Chinese export goods and twenty billion US dollars of Korean export goods in the next year.

The picture shows that in December 20th of last year, the South Korean cargo ship "morning Hai", containing two thousand and six hundred tons of liquid sulphur, was on duty.

In December 20, 2015, the FTA entered into force for the first time.

The implementation of the second tax reduction in January 1st this year involves 1679 items of zero tariff in 5 years and 2518 details in 10 years to achieve zero tariff.

In the second year tariff reduction range of 3% to 6% of the commodities, the growth of Korea's exports to China was 344, and 386 of the 2% to 3% tariff reductions appeared.

In the category of goods with a tariff cut of over 3%, the export of Korean electronic applications, metal processing machinery and other fields increased to 97.6% and 29.9% respectively.

As for China's exports to Korea, the scale of exports of clothing, footwear and other commodities to Korea increased significantly. The export volume of shoes and boots to Korea increased from 67 million US dollars before the Sino Korean FTA came into effect in November 2015 to 109 million US dollars in January 2016, or 62.68%.

The export volume of agricultural and aquatic products and household electrical appliances to Korea has also expanded.

According to the Korea Trade Association statistics, from January 2016 to February, Korean imports accounted for 21.38% of the total import volume of Chinese goods, up 0.74 percentage points from 20.64% in the same period last year.

Quan Bingrui, director of the China Economic and Financial Research Institute, told the reporter that Korean enterprises had mastered a lot of information and accumulated sufficient experience in the economic and trade exchanges between Korea and China, and they had entered the Chinese market and set up factories there.

SMEs with relatively limited information capabilities have become the biggest beneficiaries of the FTA.

According to a questionnaire survey conducted by the Korean Trade Association for 495 Korean trade enterprises, 44.5% of the respondents said that the second tax reduction would greatly boost export growth to China.

Compared with large enterprises, SMEs have more expectation on the "export dividend" effect.

Of course, there is a need for services and support from the government and relevant trade organizations.

According to China and Korea

According to relevant regulations, the two countries have promoted the construction of Sino Korean industrial cooperation park. China is now selecting three pilot cities in Yantai, Yancheng and Huizhou to build cooperation platforms for Chinese and Korean enterprises.

The Chinese and South Korean governments have held the first meeting of the Sino Korean Industrial Park cooperation mechanism. Weihai and Inchon have strengthened mutual trade and investment cooperation and played a pilot role in the Sino Korean cooperative cities.

Wang Congrong, the commercial counselor of the Chinese Embassy in South Korea, said in an interview with our reporter that the Chinese side should expand the publicity and advisory services of the Sino Korean FTA, focusing on the further implementation of the FTA, so that both sides can fully understand and make use of the FTA. The two is to learn from the advanced experience of South Korea's use of the FTA and provide reference for China to build a global FTA network.

In addition, the two sides will also understand the problems and obstacles encountered by the two companies in the use of the FTA and reflect the situation to their respective governments.

Jin Hanquan, a professor at the national diplomatic College of Korea, told our reporter that since the establishment of diplomatic relations between Korea and China in 1992, economic cooperation has become the core driving force for the development of bilateral relations.

Centered on economic cooperation, South Korea China relations have been expanding and developing in the fields of politics, military affairs, security, and social and cultural exchanges.

Over the past 3 months, the economic cooperation between South Korea and China has made new leaps. It is believed that its spillover effect will expand to other fields and make the development of bilateral relations more dynamic.

Wang Congrong pointed out that the entry into force of the FTA between China and South Korea is a realistic need for further development and integration of the two economies. In the long run, the China South Korea free trade area will promote the economic and trade relations between China and South Korea to a new level, while promoting the economy of China and South Korea.

The comprehensive integration and the promotion of regional economic integration to achieve new development play an important role in Asian Development and prosperity and global economic recovery.

It is understood that quite a number of Chinese enterprises are optimistic about the reduction of investment barriers after the signing of the Sino Korean FTA. They intend to expand their investment in Korea and use the advantages of Korea and Europe and the United States to sign the FTA to expand the global market.

The governments of China and South Korea are studying the establishment of the China South Korea Industrial Cooperation Fund, giving play to their important role in restructuring the Sino Korean industrial chain and improving the level of industrial cooperation between China and South Korea.

The two sides will also promote cooperation between China and South Korea to expand production capacity and jointly develop third country markets.

"For Chinese consumers, some Korean household appliances, daily chemical products, specialty foods, clothing, shoes and other popular products purchased for Korean tourism or Korean purchasing will be cheaper. For Korean consumers, they will also buy more agricultural and aquatic products, clothing and footwear, household appliances and so on from Korea at a more favorable price."

Wang Congrong told reporters that after the completion of the China South Korea Free Trade Zone, China will abolish tariffs on 91% of the products from South Korea, accounting for about 85% of the total imports from South Korea. South Korea will abolish tariffs on products from 92% of China and cover about 91% of imports from China.

This means lower trade costs, greater common market and better business environment.