Ananysis Of Trade Structure Between China & South Korea Under The Framework Of FTA

On 1st June 2015,China and South Korea formally signed the Sino-South Korea Free Trade Agreement which is a symbol of the establishment of Sino-South Korea Free Trade Zone.FTA is drawing global attention as Chinese most extensive coverage area of foreign trade negotiation and the largest volume of trade involving other countries.It also has the positive and far-reaching impact on the future trade structure between China and South Korea.This thesis starts from the trade structure between China and South Korea under the framework of FTA,and includes analysis of trade development trends between the two countries in the past ten years,and then states that although Chinese import/export volume is continuously increasing to South Korea,it is still in the trade deficit.By analyzing the bilateral trade commodity structure based on the standard classification of international trade and HS code,the conclusion could be drawn that the trade scope of the bilateral countries is keeping expanding,and the manufactured goods dominate the leading percentage in the trade.Next,analyzing by intra-industry index,it indicates that the bilateral trade is mainly within intra-industry trade and the total level is high.Reasons are also illustrated.This thesis then identifies four problems replying on Sino-South Korea's trade structure--imbalance of the trade structure,coexistence in complementarity and competence,trade friction prominence and the larger gap in service trade industry.The thesis also elaborates six reasons on the imbalance of Sino-South Korea's trade structure,which containing imbalance of economic development,imbalance in the structure of the commodity demand,verticality of the industrial division,difference in trade policy orientation,effects of trade surplus transferring on processing trade,and the difference on technology and innovation.In this thesis,analyzes are presented,from macro and micro aspects,on the impacts of the Sino-South Korean FTA to bilateral trade structure.In the macro level,FTA has obviously promoting effect to Sino-South Korean import and export trade.In the micro level,the export of Chinese agriculture products has led to great concussion to South Korean domestic agriculture industry and caused the decline on its agricultural output.Meanwhile,South Korean export in manufacturing products,such as electrical and electric products,metal and still products,has led to significant concussion to Chinese domestic manufacturing industry and causing the decline on Chinese manufacturing output.South Korean service industry accelerates its expansion in Chinese market,which is also becoming an threaten to Chinese domestic service industry.Finally the thesis also provides three suggestions to improve Sino-South Korean trade structure,to speed up the adjustment of foreign trade structure,to advance the structure adjustment in FTA,and to construct the safeguard mechanism for the foreign trade.