Competition And Corporation Of China And Republic Of Korea In Petrochemical Industry

China's petrochemical industry has been greatly supported by the Chinese government;the domestic demand and the export in the early stage have driven the industry muchfurther ahead. Also the cooperation with foreign countries has increased the productionscale and demand to greater level.At the present, China's demand and supply have grown dramatically, in the mean time,China's petrochemical market situation is very competitive among foreign countries;SouthKorea's petrochemical product export to China is as high as 50% and it is likely that Koreawill be number one exporter to China in this market.Considering future growth, the competition between China and Korea is not a verygood strategy comparing with the utilization of advantage complementary to form thedivision of work strategy between international countries. The trading conflicts andextreme competition with China has decreased Korean's number of export. Also thecooperation between China-Central East Asean and China-ASEAN is likely to reduceKorea's influence in the world market or even leave the country without trading alliance.This has raised the concern which started this article.The cooperation between South Korea and China in terms technology and investment iscurrently low. However, there is a potential to develop such alliance. In order to build astrong foundation for South Korea and South Korea-China's petrochemical industry, bothcountries must build the new image of the division of work among international countriesand use their own advantageous factors to develop the industry. The development shouldconcern the three following issues;first, to increase the two countries' intra-industry trade,it should improve the potential of capital-intensive and technology-intensive goods. Second,strengthen the two countries' local products. Third, promote the communication andrelationship between the two countries' enterprises and government.