Trade Relations In South Korea's Direct Investment In China With China And South Korea Within The Industry Study

Since 1992, China and South Korea established diplomatic relationship, bilateral trade between these two countries is developing rapidly. Korea is sixth largest trading partner of China, and some industrial products trade show a high intra-industry trade characteristics; China is the first country South Korea invested and South Korea is the third largest country China received its' FDI from. So this paper on direct investment from South Korea South Korea to China and intra-industry trade between these two countries has theoretical and practical significance.By studying of the status of FDI from South Korean to China and intra-industry trade between these two countries, we came to the conclusions: FDI from South Korean to China mainly concentrated in manufacturing industries, distributed in three provinces of the northeast area in China and Bohai bay area and was in small- scale; trade between China and South Korean is still on the base of resource endowment difference. Trade of primary commodities and labor-intensive products is inter-industry trade, in capital or technology-intensive products, some of these products' trade is inter-industry trade, the rest are low level vertical intra-industry trade. After the regressing measuring analysis of the impacting factor of intra-industry trade in the manufacturing industries between China and South Korea, the measurement results showed that the FDI from South Korea to China in manufacturing industries had a important impaction on IITM between these two countries and promoted the development of IITM between these two countries. At last, some suggestions that we should promote the FDI between these two countries to a higher cooperation level, strengthen specialization cooperation and practice scale economics stratagem etc are given in the text.