It can be insisted that the recent increase of Chinese manufacturing industry has an influence on the trade between South Koran and China. Since South Korea established diplomatic ties with China in 1992, the trade between China and South Korea has ri ...
It can be insisted that the recent increase of Chinese manufacturing industry has an influence on the trade between South Koran and China. Since South Korea established diplomatic ties with China in 1992, the trade between China and South Korea has risen rapidly so the trade volume has increased significantly. While the large trade surplus of South Korea has maintained as South Korean parts materials and high value-added products has exchanged with Chinese agricultural products and low value-added goods, currently the trade surplus shows the trend of decrease. It is points out that the one of the decreasing reason is the advancement of Chinese industrial structure and the slowdown of South Korea's export growth. Therefore, this study analyzes the detail of the present status and trend of Chinese parts industry which is the one of important elements of the changing South Korea-China trade structure, then examines the influence of them on the trade structure between South Korea and China.
The study focuses on the six categories such as machine parts, computer parts, electrical machinery parts, electronic parts, precision instruments based on the 'Act on Special Measures for the Promotion of Specialized Enterprises, etc。 for Component and Material' provided in 2001 in South Korea, and as temporal sphere, it investigates the trend from 2001 to 2009 when Chinese market has liberalized and its industrial structure has changed significantly since China joined the WTO.
As a result, Chinese parts industry from 2001 to 2009 developed sharply, the annual export growth of parts was higher than import growth and the international competitiveness strengthened a little in general, however, it did not effect particularly on the parts trade between South Korea and China. Chinese parts industry posted still the trade deficit of 40 billion US dollars with South Korea in 2008, and from 2001 to 2008, the Chinese annual export growth was lower than the import growth against South Korea, and the competitiveness of Chinese parts industry was weakened. However, the trade deficit growth of Chinese parts industry with South Korea has continuously slowed after the peak in 2002 so it is necessary to investigate its trend closely. As the sectorial influence on the South Korea-China trade is investigated, general machine parts and transportation machine parts were effected whereas electronic communication parts, electronic machinery parts, precision instruments were not be influenced particularly. By items, tap valve, refrigeration & air conditioning, electric conversion devices, semiconductors and integrated circuits, and automotive parts were affected.