A Research On The Expected Economic Effects Of A CHINA-KOREA FTA

China is not only one of the biggest countries, but the second economic giant in the world. For this reason, many countries are preparing for a FTA with China. With the standstill of Doha round, members of WTO are pursuing another way for the trade cooperation and facilitate the economic and political relations. The FTA policy of China begins relatively late, but going speedy. For now, China has signed FTA with Asean, Australia, Chile, Hong Kong, Macau, New Zealand, Norway, Pakistan, Peru, Singapore and Switzerland. As a giant developed country, and to strengthen the construction of the multilateral trading system at the same time, China did not give up the process of regional trade cooperation.In the21st century, with the rapid development of regionalism, China, Japan and South Korea, which are cores of the East Asian economic, the establishment of China-Korea FTA has great significance for the future integration of the whole regional.Politically, there are not many conflicts between China and South Korea. On the question of Korea peninsula and Taiwan straits’ stable, the two countries have the same standpoint, and they both against the right-wing forces of Japan for distorting the history of World War2. Economically, they are important trade partners for each other, and have great potential to trade more in the future. The China-Korea FTA will be established for sure, and will promote the development of the two countries’ economy.This study empirically analyses the impact of the China-Korea FTA on the industrials of two countries. If the Korea-China FTA is concluded, both countries will benefit from the assignment. However, there still exist crisis for some industries of China and South Korea.In the article I offered some suggestion. First, because of the sensitivity of agricultural of South Korea, we should make some concessions for the benefit of weak industries of China. Second, Chinese government must do some job, to face the negative impact of the coming CHINA-KOREA FTA. And the firms should change their strategy to compete with the Korean company.