Download or read book Structural Changes in Korea China Trade and Policy Implications written by Dongsoo Kim and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Korea and China established formal relations 30 years ago. Vibrant bilateral trade has significantly contributed to the economic growth of both nations. However, a remarkable turning point has occurred recently: Bilateral trade seemed to balance out due to China's lockdown policy and Korea's stronger corporate competitiveness, but Korea has posted a trade deficit with China since last year for all goods except semiconductors. Such a deficit could signal the beginning of structural change, though the figure over the last four months might be a temporary phenomenon.Over the last 30 years, high-tech industries have played an increasingly important role in bilateral trade in both exports and imports. In exports, semiconductors, petrochemicals, and displays have leading positions but in imports, Korean manufacturing is highly dependent on China, which is expanding into other industries. That means Korea is increasingly reliant on components or raw materials from China, leading to greater risk factors.To effectively respond to the short-term deficit and mid- to long-term structural changes in trade with China, Korea must diversify its import partners, even if doing so is likely to incur high costs in the short term. In the mid-term, the country should develop overseas resources and change its strategic approach to the global market, which should be framed as economic blocs, rather than as a single entity. Over the long term, Korea must strengthen its industrial competitiveness and foster high-tech human resources to secure key technologies to maintain its comparative advantage over China.For the first time in its modern trade with China, Korea recorded a trade deficit for four consecutive months, representing reversal major reversal of roles: Korea had in the past recorded enormous trade surpluses in the tens of billions of USD. Thus looking at the trade deficit with China provides an opportunity to consider changes in the bilateral trade balance, the reasons for these changes, and potential responses to them.

Download or read book The Rise of China and Structural Changes in Korea and Asia written by Takatoshi Ito and published by Edward Elgar Publishing. This book was released on 2010-01-01 with total page 353 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book brings together studies conducted by researchers in East Asian countries who seek to better understand the impact of China s rise and the consequent policy challenges. The expert contributors illustrate that the rise of China and its integration with the rest of the world is one of the most important developments in the global economy. Over the past thirty years or so, China s economy has grown at nearly ten percent per annum with the expansion of the modern, export-oriented industrial sector, to become the third largest economy in the world and the second largest in trade. This book reviews the economic growth of East Asian countries since the 1990s and the various impacts that the rise of China has had on these countries. In particular, it addresses policy challenges faced in coping with the rise of China and maintaining economic growth. This timely book will strongly appeal to academics and researchers focusing on East Asia and China as well as those interested in international trade, development and economic growth.

Download or read book Analysis on Structural Changes in Korea China Processing Trade written by Kayoung Park and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Processing trade contributed greatly to China's economic growth. The total value of China's processing trade was US $1.7 billion during the initial period of reform and opening up, and reached US $1.2 trillion in 2015. However, the proportion of processing trade in China's trade volume has been gradually declining due to the restrictions on processing trade imposed in the 2000s, a decline in overseas demand since the global financial crisis, and increasing labor costs in China. Nevertheless, its proportion still constitutes about 30% of the total trade value of China, remaining important. In particular, the percentage of processing trade with Korea accounts for approximately 50%, playing a vital role in China's total trade with Korea.China's processing trade is largely divided into two major types : processing with imported materials (PIM) and processing with supplied materials (PSM). PIM accounted for 86.2% of China's total processing trade in 2015, taking advantage of technological development and creation of value added. In PIM, Chinese firms import components, raw materials and parts so as to process and assemble them into finished products based on the firms' plan for re-export, for which the processing firms are responsible and can strategically create value added. In PSM, a Chinese processing company is provided with raw materials and components for free of charge by an overseas enterprise, and processes and assembles them on consignment and in accordance with the requirements of the overseas enterprise. The Chinese firm exports the finished parts or products to the enterprise that supplied materials and is paid through charging a processing fee. PSM can take advantage of low costs as free raw materials are supplied. Hence, it was prevalent during the early stage of reform and opening up, in which China had an abundance of labor force while it lacked funds and technologies. Therefore, PSM requires imports of auxiliary parts as well as core parts and materials, while PIM mainly requires imports of the core parts and materials which are not produced in China.There are several differences between PIM and PSM such as value addition and required technical levels. Therefore, it is necessary to conduct an analysis focusing on the trade structure of the both processing trade types. In most studies, processing trade as a whole was regarded as a type of trade because it is difficult to access to detailed trade data such as trade data by types. The existing studies analyzed the trade structures by processing stages such as intermediate goods, consumer goods and primary products based on the classification by Broad Economic Categories (BEC). However, through these studies, it is difficult to separate which import and export transactions undertaken through ordinary trade or processing trade channels. In addition, the proportion of PIM in total processing trade is considerably higher within the processing trade, and the significance of PIM for high added value can be underestimated. An analysis on the trade structure by characteristics of enterprises is also crucial. The proportions of Chinese enterprises and foreign-invested enterprises (FIEs) in different types of trade such as ordinary trade, PIM and PSM as well as shifts in these will provide meaningful implications. Most FIEs involved in China-South Korea processing trade are Korean companies. More specifically, enterprises exporting finished goods after processing to South Korea could be Korean companies which entered and operate in China. Through such detailed analysis, this paper grasps the structural changes in China-South Korea trade and regulating policy, and suggests implications.

Download or read book The Impact of Chinese Economic Structural Changes on Korea s Exports to China written by Kotbee Shin and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Chinese Economic structural Changes on Korea s Export to China KIEP Working Paper 16 0 written by Shin Kotbee and published by . This book was released on 2016-08-10 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Chinese Economic Structural Changes on Korea s Exports to China written by Kotbee Shin and published by . This book was released on 2017 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the structural changes of the Chinese economy and how they have affected Korea's exports to China. Focusing on the evolution of China's role in the global value chain, we estimate the impact of China's external demand and domestic demand. We also shed light on the effect of compositional changes in China's GDP on Korea's exports to China. The results of the VAR analysis suggest that external demand had a significant impact on Korea's exports to China prior to 2008, while Chinese domestic demand became more important afterwards. Moreover, Chinese investment is the most important factor in determining Korea's exports to China, and Chinese private consumption has recently been gaining relevance.

Download or read book China s Processing Trade written by Bawoo Kim and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: China, the largest trading partner of Korea, is emerging as a key player in the world economy. However, China's processing trade is not emphasized despite its role and importance due to the wrong perception concerning processing trade. Only low value-added products are associated with processing trade, which is thought to decay in the near future. However, in China-Korea trade, the proportion of processing trade is high (nearly half), and it is concentrated in high value-added industries such as electronics. Therefore, it is expected to continue in the future. In the early days, the processing trade of China was concentrated in labor-intensive items, but with foreign-funded enterprises and related R&D expansion, the proportion of technology-intensive items such as electronics and machinery increased gradually. This contributed to the enhancement of the overall technology level of China. There is an assessment that contributes towards relieving the unemployment problem in China. However, still a significant portion of the processing trade consists of the simple processing and assembling stages. The high portion of simple processing trade is an obstacle to the advancement of industrial structure and China's own brand value. As part of the background to these discussions, the Chinese government has been expanding the scope of the processing trade restrictions continuously to promote the advancement of the domestic industry since 1999. However, as part of the economic stimulus package to offset the impact of the global financial crisis, processing trade restrictions were eased in 2009. Along with the recovery of the world economy in 2010, the Chinese government is again expanding the scope of the restrictions. It is expected that more prohibited items for processing trade will be added, which will be a burden for related industries. In this study, we provide strategic implications for Korea's approach to China by analyzing the structural changes and related policy changes in China. In particular, this paper attempts to analyze the industrial processing trade between Korea and China by using China Custom trade data.

Download or read book Structural Changes in China s Import Market for Domestic Demand and Implications written by Jihyun Jung and published by . This book was released on 2016 with total page 5 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study aims to seek the countermeasures of Korea by analyzing the structural changes in China's import market for domestic demand and Korea's export to China. In particular, the characteristics of the import market for domestic demand was analyzed by processing phase and industry. China's import structure is shifting focus to general trade (import for domestic demand), general trade import has switched to a structure focused on primary commodities since 2010, while total import is still focused on intermediate goods. And the manufacturing industry plays a crucial role, but has recently been witnessing a rapid decline in share.Korea's export to China is still defined by a structure of export-oriented processing trade. The structure of Korea's general trade export to China is still concentrated on intermediate goods and the top two manufacturing industries.Therefore, exports to China should likewise undergo a structural change in accordance with the evolving needs of China's domestic market, especially Korea should raise its export of intermediate goods (parts and components) and consumer goods to the Chinese domestic market.

Download or read book Korean Exports and the Role of China written by Sunoong Hwang and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Trade has played a crucial role in the rapid growth of Korea over the last few decades. The share of Korea's real exports in its real GDP increased from 4.2% to 49.3% between 1970 and 2010. Therefore, it is very important for Korea to gather empirical information about the determinants of its exports, which is the goal of this article. There has been a substantial amount of research on the effects of global business cycles, the relative prices of exported goods, and the exchange rate of the Korean won on Korea's exports.1) This article complements the existing literature by determining the role of China in influencing the exports of Korean industries. Among the structural changes in the international trade environment that the Korean economy has faced in recent years, the most important are China's rapid growth and its integration into the global economy. On the one hand, China's share of Korean exports has risen rapidly since 1990s, and now the Chinese market accounts for the largest share of Korean exports among its trading partners. On the other hand, the rise of China as the world's major supplier of cheap manufactured good has put increased competitive pressure on Korea industries. As a result, changes in China's exports and consumption expenditures may have a significant effect on Korean exports. Of note is that the exact magnitude of the effects is likely to be different between industries, since the degree of dependence on China as an export market and the degree of competitive pressure imposed by China are different across industries.This article provides industry-level evidence on the long-run effects of China's exports and consumption expenditures on Korean exports, using the fully-modified generalized method of moments (FM-GMM) proposed by Kitamura and Phillips (1997).2) The estimation results suggest that the effect of China's exports is quite different across industries, with the mean effect statistically indistinguishable from zero. In contrast, China's consumption expenditure has a significant and positive effect on Korean exports in most industries. Interestingly, in both cases, the magnitude of the effect is much larger in heavy manufacturing, capital and intermediate goods industries than in light manufacturing and consumption goods industries, reflecting the characteristics of vertical production linkages between China and Korea.The remainder of this article is structured as follows. Section 2 provides a descriptive discussion of the characteristics of China's exports and domestic consumption expenditures as well as Korea's exports to China. Section 3 performs an econometric analysis of the role of China in Korean exports. Section 4 concludes the article.

Download or read book Implications of Changes in the Structure of Trade and Foreign Investment Between Korea and Vietnam written by Sunin Jung and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: As Vietnam has emerged as a post-China magnet for foreign investment where businesses can enjoy low production cost based on abundant and cheap labor, global companies have accelerated their investment in Vietnam recently. The government of Vietnam's strong willingness for closer integration with the global economy and its political stability will attract more foreign investment to Vietnam.Vietnam has also risen as an economically important partner for Korea. Vietnam ranks the third largest importer to Korea, and Korea is now the largest foreign investor in Vietnam. The volume of trade between the two countries had remarkably increased to 37.6 billion from 13 billion USD over the five years from 2010 to 2015. During the period, characteristics of foreign investment in Vietnam had changed, and the government of Vietnam began striving for industrial development. These changes have influenced the structure of investment and trade between Korea and Vietnam.This report aims to analyze the structural changes in trade and investment between the countries and to provide implications for potential Korean investors. First, this report examines trend of export and import by classifying them into types of goods in different processing stages such as capital goods, consumption goods, and intermediate goods. The changes in major items of export and import between the two countries are analyzed as well. It also reviews the recent trend and changes of Korea's investment to Vietnam, one of the main factors causing changes in trade. Based on the analysis, it finally provides with implications for Korean potential investors and companies.

Download or read book Structural Changes of the Chinese Economy and New Opportunities for Korea Vol 1 written by Kyungsoo Choi and published by . This book was released on 2016 with total page 644 pages. Available in PDF, EPUB and Kindle. Book excerpt: English Abstract: Since the reestablishment of diplomatic relations between Korea and China in 1992, the two economies have become increasingly interdependent and mutually beneficial. The robust growth of the Chinese economy was a major force behind Korea's successful recovery from two major economic shocks within a decade -- the Asian Foreign Exchange Crisis in 1997 and the Global Financial Crisis in 2008. Nevertheless, as Chinese firms aggressively grapple for Korea's export market shares and diminish profit margins, China starts to be reckoned as a threat for Korea. Further, its recent slump has been deemed as risk factor for Korea. The rapid cooling off has already exerted some adverse effects on the Korean economy. So, what is the current state of the Chinese economy and how much has the economic relationship between the two countries changed? How should we view the hardships of Korea's industries incited by the massive expansion of China's shipbuilding, steel, and chemical industries? What are the real causes for the demise of Korean industry? Why is the Chinese economy experiencing a simultaneous collision of overinvestment, instability and slow growth? Will China's renewed efforts for structural reform, exemplified by the 'New Normal' and 'Chinese Manufacture 2025,' be successful and if so, what are the implications for the Korean economy? How should the trade relationship between Korea and China change in the future? What strategy should Korea employ if it is to benefit from China's transition from manufacturing to services and from an export-driven to a domestic demand led growth? This report will try to answer these questions, albeit possibly imperfectly.

Download or read book Korea China FTA in Its First Year and Effectuation written by Kyu Yub Lee and published by . This book was released on 2017 with total page 5 pages. Available in PDF, EPUB and Kindle. Book excerpt: On 20 December 2015, the Korea-China Free Trade Agreement (FTA) entered into force. The Korea-China FTA would impact both economies' welfare in the long run, elevating it to a higher level compared to before the FTA was concluded. However, it must be pointed out that in the short run, trade activities between Korea and China might be affected by external/internal economic forces such as the persistent global trade slowdown and weak domestic economic growth, and non-economic forces such as THAAD and non-tariff barriers. Thus, it might be impetuous to examine the economic impact on the Korean and Chinese economies just a year after the Korea-China FTA was concluded. Nevertheless, it would be worth examining the positive changes that have occurred over the last year, and providing constructive suggestions to both countries in order to accelerate the materialization of the benefits of the Korea-China FTA.This article investigates the major changes after the Korea-China FTA in terms of trade of goods and services, digital trade, and investment. Section II covers a brief analysis of the trade of goods between Korea and China. Section III underscores the distinctive features of international digital trade between Korea and China. Section IV provides facts on trade in services and investment. The last section presents policy implications for the Korea-China FTA.

Download or read book China s Economic Rise written by Congressional Research Service and published by Createspace Independent Publishing Platform. This book was released on 2017-09-17 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior to the initiation of economic reforms and trade liberalization 36 years ago, China maintained policies that kept the economy very poor, stagnant, centrally-controlled, vastly inefficient, and relatively isolated from the global economy. Since opening up to foreign trade and investment and implementing free market reforms in 1979, China has been among the world's fastest-growing economies, with real annual gross domestic product (GDP) growth averaging nearly 10% through 2016. In recent years, China has emerged as a major global economic power. It is now the world's largest economy (on a purchasing power parity basis), manufacturer, merchandise trader, and holder of foreign exchange reserves.The global economic crisis that began in 2008 greatly affected China's economy. China's exports, imports, and foreign direct investment (FDI) inflows declined, GDP growth slowed, and millions of Chinese workers reportedly lost their jobs. The Chinese government responded by implementing a $586 billion economic stimulus package and loosening monetary policies to increase bank lending. Such policies enabled China to effectively weather the effects of the sharp global fall in demand for Chinese products, but may have contributed to overcapacity in several industries and increased debt by Chinese firms and local government. China's economy has slowed in recent years. Real GDP growth has slowed in each of the past six years, dropping from 10.6% in 2010 to 6.7% in 2016, and is projected to slow to 5.7% by 2022.The Chinese government has attempted to steer the economy to a "new normal" of slower, but more stable and sustainable, economic growth. Yet, concerns have deepened in recent years over the health of the Chinese economy. On August 11, 2015, the Chinese government announced that the daily reference rate of the renminbi (RMB) would become more "market-oriented." Over the next three days, the RMB depreciated against the dollar and led to charges that China's goal was to boost exports to help stimulate the economy (which some suspect is in worse shape than indicated by official Chinese economic statistics). Concerns over the state of the Chinese economy appear to have often contributed to volatility in global stock indexes in recent years.The ability of China to maintain a rapidly growing economy in the long run will likely depend largely on the ability of the Chinese government to implement comprehensive economic reforms that more quickly hasten China's transition to a free market economy; rebalance the Chinese economy by making consumer demand, rather than exporting and fixed investment, the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental protection. The Chinese government has acknowledged that its current economic growth model needs to be altered and has announced several initiatives to address various economic challenges. In November 2013, the Communist Party of China held the Third Plenum of its 18th Party Congress, which outlined a number of broad policy reforms to boost competition and economic efficiency. For example, the communique stated that the market would now play a "decisive" role in allocating resources in the economy. At the same time, however, the communique emphasized the continued important role of the state sector in China's economy. In addition, many foreign firms have complained that the business climate in China has worsened in recent years. Thus, it remains unclear how committed the Chinese government is to implementing new comprehensive economic reforms.China's economic rise has significant implications for the United States and hence is of major interest to Congress. This report provides background on China's economic rise; describes its current economic structure; identifies the challenges China faces to maintain economic growth; and discusses the challenges, opportunities, and implications of China's economic rise.

Download or read book Structural Changes of the Chinese Economy and New Opportunities for Korea Vol 2 written by Kyungsoo Choi and published by . This book was released on 2016 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: English Abstract: Since the reestablishment of diplomatic relations between Korea and China in 1992, the two economies have become increasingly interdependent and mutually beneficial. The robust growth of the Chinese economy was a major force behind Korea's successful recovery from two major economic shocks within a decade -- the Asian Foreign Exchange Crisis in 1997 and the Global Financial Crisis in 2008. Nevertheless, as Chinese firms aggressively grapple for Korea's export market shares and diminish profit margins, China starts to be reckoned as a threat for Korea. Further, its recent slump has been deemed as risk factor for Korea. The rapid cooling off has already exerted some adverse effects on the Korean economy. So, what is the current state of the Chinese economy and how much has the economic relationship between the two countries changed? How should we view the hardships of Korea's industries incited by the massive expansion of China's shipbuilding, steel, and chemical industries? What are the real causes for the demise of Korean industry? Why is the Chinese economy experiencing a simultaneous collision of over-investment, instability and slow growth? Will China's renewed efforts for structural reform, exemplified by the 'New Normal' and 'Chinese Manufacture 2025,' be successful and if so, what are the implications for the Korean economy? How should the trade relationship between Korea and China change in the future? What strategy should Korea employ if it is to benefit from China's transition from manufacturing to services and from an export-driven to a domestic demand led growth? This report will try to answer these questions, albeit possibly imperfectly.

Download or read book Changing Patterns of Global Trade written by Nagwa Riad and published by International Monetary Fund. This book was released on 2012-01-15 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: Changing Patterns of Global Trade outlines the factors underlying important shifts in global trade that have occurred in recent decades. The emergence of global supply chains and their increasing role in trade patterns allowed emerging market economies to boost their inputs in high-technology exports and is associated with increased trade interconnectedness.The analysis points to one important trend taking place over the last decade: the emergence of China as a major systemically important trading hub, reflecting not only the size of trade but also the increase in number of its significant trading partners.

Download or read book China and Asia in Global Trade Slowdown written by Gee Hee Hong and published by International Monetary Fund. This book was released on 2016-08-16 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Asia and China made disproportionate contributions to the slowdown of global trade growth in 2015. China’s import growth slowed starkly, driven by both external and domestic factors, including a rebalancing of demand. Econometric results point to weak investment and rebalancing as the main causes of the import slowdown. Spillover effects from China’s rebalancing are estimated for some 60 countries using value-added trade data, and are found to be more negative on Asia and commodity exporters than others.

Download or read book The Global Trade Slowdown written by Cristina Constantinescu and published by International Monetary Fund. This book was released on 2015-01-21 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper focuses on the sluggish growth of world trade relative to income growth in recent years. The analysis uses an empirical strategy based on an error correction model to assess whether the global trade slowdown is structural or cyclical. An estimate of the relationship between trade and income in the past four decades reveals that the long-term trade elasticity rose sharply in the 1990s, but declined significantly in the 2000s even before the global financial crisis. These results suggest that trade is growing slowly not only because of slow growth of Gross Domestic Product (GDP), but also because of a structural change in the trade-GDP relationship in recent years. The available evidence suggests that the explanation may lie in the slowing pace of international vertical specialization rather than increasing protection or the changing composition of trade and GDP.