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A Study on the Changes of the Trade Environment of the Chinese Market and the Korean Enterprises' Strategies of Export to China

The system of division of labor between Korea and China has attained remarkable growth of export to China so far. Since diplomatic relation between South Korea and China in 1992, South Korea has grown up to be third largest trading country with China, and continuous growth of foreign trade with China supported the Korean economy greatly since Financial Crisis in 2008. However, today's Chinese foreign trade environment made change to differ from the past. At economic growth, the Chinese government made change of growth strategy from export orientation to domestic demand to strengthen competitiveness at high level of industrial structure and to let the Chinese enterprises compete with Korean enterprises. In other words, the Chinese market has quite different competition structure. This study investigated the Chinese market based on precedent study on competition structure in the Japanese market (Kwon and Nam, 2013). The study examined changes of foreign trade environment in the Chinese market from point of view of competition structure to empirically investigate Korean enterprises' export strategies. Korean enterprises had strategies of price priority, economy of scale, and product differentiation at changes of competition structure at the Chinese market. The Korean enterprises were found to keep foothold of market entry and to strengthen production ability of special products and to have low profit and insufficient economic outcome, so that they had difficulty at pursuit of profits at the Chinese market.

1. Introduction

2. Models and Hypotheses

3. Conclusion

References

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