FTA시대에 한국과 중국의 품목별 산업내 지수 비교분석과 경쟁력 변화분석

A Analysis of Competition variety and Comparative in Inter-industry index between Korea and China in FTA era

The Coming to 20th year of establishment of diplomatic relationship between Korea and China, economical relationship between the two countries has developed to be quite intimate. This can be observed following the recent discussion of the heads of the two countries to conclude signing FTA between Korea and China. Whilst in such economic relations, since the Chinese Reform and Opening up and with joining WTO, China has been transiting dramatically to high value-added industry as a result of fast development of manufacturing industry, due to prosperous labor, accumulation of scientific and engineering talents, and opening the market to competitions. In particular, with advancement of Chinese industrial structure from low-level industry to high-level industry, there are concerned opinions of formation of competitive relationship between Korea due to increasing industrial similarities. With joining WTO, China which in past concentrated on manufacturing rubber, leather, textile and shoes, has now converted their attention to heavy and chemical industries, securing its competition in industries in mechanics, precision instrument, electronics, steel and metals. Since Korea is already competitive of these industries in the global market, such advancement of Chinese industries have developed into the situation in which Korea may have to economically cooperate with China. Thus this research examined briefly on developing economical relationship between Korea and China, and analyzed thoroughly on influence of high-level industry such as mechanics, precision instruments, electronics, steel and metals, upon the relations with Korea. Specifically, this analysis has investigated on immediate competitive power of China upon joining of WTO and competitive power of recent 2 years. In conclusion, it has been analyzed that Korean and Chinese industrial structures have similar shapes and rather than having inter-industrial trade, they appears to be intro-industrial trade. In addition, concrete analysis should be executed on items where competitions are intense and take measures to eliminate any damages on items after signing of FTA.