China South Korea FTA Comes Into Effect 1St Anniversary Sino US Friction Affects Korea's Foreign Trade

Korean media said that the 20 China Korea Free Trade Agreement (FTA) will soon come into effect 1st anniversary. In the meantime, China and South Korea FTA lowered tariffs to help South Korea export slowdown. However, various non-tariff barriers are still in existence, coupled with intensified Sino US trade frictions, resulting in an increasingly deteriorating foreign trade environment in Korea.

According to reports, the Sino Korean FTA came into effect in December 20th last year, and the second tax reduction was implemented in January 1st this year. More than 90% of the products will be zero tariff in 20 years' transition period. Outsiders say that this has played a supporting role in the reduction of South Korea's export to China.

Reported that The Republic of Korea The market share of imports from China has gradually increased, but South Korea's exports to China are decreasing. As of October, the proportion of South Korea's imports from the Chinese market was 10.5%, ranking the first place. Over the same period, South Korea's exports to China declined for the 16 consecutive month. In particular, the third quarter trade balance with China amounted to US $9 billion 787 million 810 thousand, only half of the fourth quarter of 2013 (US $17 billion 296 million 280 thousand).

At the same time, China's non-tariff barriers in the field of consumer goods are also growing. Since October, China has increased the supervision of imported formula milk powder, and the cosmetics inspection requirements have been stricter since December. On the other hand, China's restrictions on South Korea's restrictions on South Korea's "South Korean order" are even more worrying.

Reported that Sino US trade The aggravation of friction is also an impact on South Korea's exports. Because South Korea's dependence on exports is relatively high, if Sino US trade frictions escalate, South Korea, which is sandwiched between the two countries, will inevitably be seriously affected. In December 13th, China World Trade Organization He filed a complaint against the US and the European Union for not recognizing its market economy status. US President elect Trump has said it will impose a 45% tariff on Chinese goods. Trade tensions between China and the United States are expected to further escalate.

Yu Taixi, the second official (Vice Minister) of the Ministry of industry and Commerce resources of Korea, pointed out at a meeting recently that the South Korean government will actively respond to the violation of international rules and regulations in accordance with the Sino Korean FTA and the relevant provisions of the WTO, so as to protect South Korean enterprises from unfair treatment.

Related links:

2, reporters learned from the Commerce Bureau of Weihai, Shandong province. In the first half of this year, 87 new foreign-funded projects were approved in Weihai, and 655 million yuan actually amounted to foreign investment. Among them, Korea accounted for nearly 180 million dollars, an increase of more than 20% over the same period last year.

South Korea is one of the main sources of foreign investment in Weihai. In the first half of this year, 53 new projects were approved by Weihai, accounting for more than half of the total number of new projects approved. At present, the Korea CNT call center project with a total investment of US $60 million is under negotiation and will soon be located in Weihai.

Weihai Municipal Bureau of Commerce staff said that since the signing of the Sino Korean FTA, China and South Korea have enjoyed the dividend policy in attracting investment policies, promoting channels and financial support. Korean enterprises have more convenient investment in China, but also promoted trade between China and South Korea.

The reporter learned from Weihai customs that in the first half of this year, the total value of Weihai's imports and exports to Korea reached 17 billion 120 million yuan, an increase of 12.8% over the same period last year, accounting for more than 30% of the total value of foreign trade and imports of Weihai in the same period.

Weihai animal husbandry Trading Co., Ltd. is one of the main importers of Korean food. The Sino Korean FTA agreement has brought substantial benefits to the company. In the first half of this year, the company reduced taxes by several hundred thousand yuan, and the certificate of origin also realized electronic networking.

Weihai, Shandong, is China's nearest city to Korea. More than 700 Korean investment companies have attracted Korean enterprises such as Hyundai Heavy Industries, Lotte Group, Samsung Electronics, SK group and so on. The investment is mainly concentrated in shipbuilding, electronics, machinery, clothing, light industry and other industries. In recent years, it has gradually extended to the three industries such as shipping, commerce, trade, catering and so on.

At the same time, Weihai took the lead in launching the cross-border electricity export business between China and Korea in China, and launched three ways of shipping, shipping and air transportation to Korea.

In June 2015, the Sino Korean FTA was formally signed. The agreement has selected Weihai and Inchon free economic zone of China as the model zone of China Korea FTA regional economic cooperation. Weihai has become the only city in China that has written into the FTA between China and Korea.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.