Study On The Influence Of The Establishment Of Sino-Korea FTA On Electronic Products Trade Between China And Korea

China and South Korea are East Asian Countries, the bilateral economics and trade development is extremely rapid since they established official diplomatic relations last century. The electronic products trade are very important in bilateral trade, and the electronic information industry becomes one important power of impetus to both countries. Comparing with China, South Korea have the traditional superiority, but with Chinese development, the situation has changed. There are some changes in electronic products trade between China and South Korea, and it is essential to research the changes in competitiveness and complementarity; on the other hand, the regional economic integration development is rapid, most countries take an active part in regional economic integration and enjoy the benefits in the cooperation. With joint effort, through eight years’ careful preparation, Sino-Korea FTA finished in June 1, 2015 after three years’ negotiations. People’s Republic of China Government And Rep. of Korea Government’s official free trade agreement was signed at Seoul and it is working now.To bilateral electronic products trade, is it an opportunity or is it an challenge? What’s the whole effect? And what will happen in the future?Firstly, this article introduces the establishment of Sino-Korea FTA and electronic products content. Then by analyzing Chinese and South Korean electronic products trade scale with quantitative analysis based on ten years’ Chinese and South Korean both sides’ electronic products trade data and use the technical order of complexity index to analyze Chinese and South Korean electronic products technical level. Afterwards, use index analytic method to analysis competitiveness and the complementarity between China and South Korea and have a new realize. Finally, carrying on the real diagnosis simulation based on the GTAP model to analyze the influence on Chinese and South Korean electronic products trade from Sino-Korea FTA.The research discovered that Chinese and South Korean electronic product trade scale becomes bigger, and Chinese and South Korean electronic product’s technology structure has changed. China has some technology superiority except the electron tube and the semiconductor electronic products; there are competitiveness and complementarity in both countries, and the whole technological level of China is improved, but it is different when comparing with South Korean partial product high added value electronic products. Finally, under the Sino-Koroea FTA establishment’s policy impact, selects the China and South Korea import electronic products change, thebalance of trade, the export free on board declension according to the GTAP analogue result to analysis. The establishment of Sino-Koroea FTA produces more trade creation effect than the trade shift effect, China and South Korea’s welfare increases. It can be discovered that FTA’s establishment can make Chinese electronic products with high added value, like primary electronic device contour, will be impacted by South Korean same industry. Then raise advises to it.