Commerce Department Expert: China-ROK FTA can be docked with the integration of Beijing, Tianjin

By the end of February this year, China and South Korea South Korea completed FTA was initialed all the text, and to confirm the contents of the agreement, covering the 17 areas of trade in goods, trade in services, investment and rules.

Minister of Commerce Gao Hucheng said recently that China-ROK FTA text ongoing conversion work, formally signed in the first half of this year should be completed.

This means that once the agreement signed, China will achieve zero tariffs up to 20 years to reach 91% of tariff lines of products, 85% of the imports, the Korean tariff goods tariff of 92%, 91% of imports.

China-ROK FTA will no doubt draw on economic and trade development between the two countries indelible mark. Corresponding worth exploring is what many years of cooperation between China and Korea trade benefited from the achievements? After the signing of the FTA between China and Korea, China and the ROK will bring what kind of opportunity?

Recently, the “Daily News” reporter (hereinafter referred to as “NBD”) with these questions, an interview with the deputy Department of Commerce International Trade and Economic Cooperation Institute of International Market Research 任白明.

Seeking new opportunities through the bilateral FTA

NBD: trade cooperation between China and South Korea have made a lot of achievements, in your opinion, these achievements thanks to what?

Bai Ming: In my opinion, in all of China’s trading partners, trade complementary relationship between China and South Korea is the most fully embodied. China is South Korea to provide a broad market, especially Qingdao, Weihai and other places, gathering a large number of Korean enterprises. In addition, China and South Korea face a large industrial connection, every vein Korean industries related to China the same, every little change in China’s economy affects all of the Korean economy’s nerves. China-ROK FTA between the two countries to reduce the threshold of industrial docking, more conducive to high-quality complementary resources, so that China and South Korea is not only a business relationship, in some industries it is to form an integrated trend.

NBD: what will be the future development of China and South Korea trend? What are the opportunities faced?

Bai Ming: The current problem is that the development of Chinese industry to make industrial isomorphism between China and South Korea is growing, if not change the past, complementary cooperation model, the development of space will become increasingly smaller. At the same time it should be noted that the low-end industries isomorphic to establish the foundation for a higher level of bilateral cooperation, which also determines the development of South Korea in the field of “Internet +” and “Industry 4.0″ and other aspects of cooperation in the future.

In addition, China is currently undergoing industrial restructuring and upgrading, which is a strategic emerging industries, including network marketing platform, grafting point is cooperation between China and South Korea.

Currently, the opportunities between the two countries to explore more from the bilateral FTA. China-ROK FTA would reinforce South Korea trade in the future will be more trade liberalization and facilitation. Such as customs inspection on the implementation of bilateral mutual recognition of inspection bodies, after the local production site inspection, directly to other countries, in order to reduce transaction costs and improve transaction efficiency.

South Korea increment leveraging regional cooperation

NBD: You just mentioned that China-ROK trade agreements contribute to trade integration, in addition to China and South Korea FTA which will release the bonus?

Butt level between China and the ROK FTA dividend more performance in the manufacturing sector of the industry: bright white. With China and South Korea cultural, economic and trade open gradually in-depth, Korean products in China will become increasingly popular, and the completion of the FTA negotiations to expand the level of openness between the two countries, business contacts will also be more convenient. More important it is, as of the first to build a high-level FTA, China-ROK FTA will be “along the way” along the FTA to provide a sample.

China-ROK FTA negotiations are successfully completed, will have other unfinished FTA have a demonstration effect. In China FTA strategic layout, with countries and regions Iceland, Switzerland and so different, ROK FTA is a single FTA in trade larger, more extensive range of industrial exposure. The past two years, China and South Korea to promote industrial upgrading very hard, the FTA negotiations are completed, will help the two industries complement each other, to achieve the optimal allocation of marketing resources.

NBD: China-ROK FTA to promote local development will play what role?

Bai Ming: you place, the first China-ROK FTA will help promote Qingdao, Weihai, Tianjin and other places, and South Korea close relationship, in fact, Qingdao, Weihai and other places have also established a number of parks for Korea.

In addition, Tianjin Free Trade Zone will soon be listed, although the Tianjin Free Trade Zone is for, but the basis of existing cooperation, as well as the geographical location of the point of view of the world, in cooperation with the Tianjin Free Trade Zone, Korea certainly pre-empted. Now not only focus on the size of the existing stock of Tianjin Free Trade Zone, etc., but also depends on the increment, the bilateral FTA can interface with each other and the integration of Beijing, Tianjin, Beijing, Tianjin and integration because, a lot of resources will be to Tianjin FTA gathering, and clearance in Beijing, Tianjin and mutual integration, the Beijing to Tianjin industry has become even more convenient customs clearance, crossed the threshold of the FTA, but also more conducive to China-ROK cooperation.

Post time: Nov-02-2019