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In the past 20 years, both China and Korea has developed greatly in international trade. In some aspects, China has surpassed Korea, now the two countries are the most important trade partners with each other. At the same time, there arise som intense competitions in some fields. Through comparison, we know that China moves up the value chain in terms of gross trade production, but the change in value added trade is much more mixed. Korea is moving up the value chain much better than China. The big changes are a massive loss of competitiveness in primary goods and significant increases in competitiveness in transport equipment and machinery nec(not else classified). Measured by the switch from foreign to domestic sources for intermediates, The latter two sectors are typically considered high-tech so the substitution of Korean intermediates for imported intermediates suggests a move up the value chain in these sectors.

Abstract

1. Introductions

2. The characteristics of trading patterns between China and Korea

3. Some New Changes and Trends in Two Countries’ Trade Pattern

4. The gap of trade between China and Korea

5. Conclusion and Future Prediction

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