A Study on the Development Status and Discussion of China-Korea Free Trade Area

A Study on the Development Status and Discussion of China-Korea Free Trade Area

Purpose – Since the formal establishment of diplomatic relations between China and South Korea in 1992, bilateral trade between China and South Korea has been developing steadily. To meet the trend of economic globalization and regional economic integration, the governments of China and South Korea formally signed the China-Korea Free Trade Agreement (FTA) in 2015. Taking the recent development of China-Korea trade in the new era as an entry point, this paper proposes suggestions for promoting the sustainable development of bilateral trade by analyzing the current situation of China-Korea trade development. Design/Methodology/Approach – This paper firstly analyzes the development status of China-Korea FTA by combing the data from the Ministry of Commerce of China, and further analyzes the current situation of bilateral trade between China and South Korea by quantitative analysis, and studies the specific impact of China-Korea FTA on the import and export trade between the two countries; finally concludes the above study and makes suggestions. Findings – The development of China-Korea FTA has an obvious role in promoting the trade between the two countries and helps to promote the economic development of both countries. Suggestions include: China and Korea should further expand the depth of bilateral trade cooperation; use the China-Korea FTA to realize the upgrading of industrial structure of both countries; use the China-Korea FTA to expand bilateral cooperation in foreign investment services. Research Implications – The study of the trade effects of the FTA between China and Korea helps both countries to make full use of the opportunities brought by the establishment of the FTA, identify the problems in bilateral trade between China and Korea, and provide policy recommendations for achieving a win-win situation for both countries.