Economic And Trade Relationship And Countermeasure Selection Between China And Korea After Entrance To WTO Of China

There has been 3 years since China officially became a member of WTO on Dec 11, 2001, which is a key step for China economy to integrate into economy system of the world, and also an important progress of economic globalization. Furthermore, the multilateral, unlimited and stable most-favored-nation clause was given to the products of China in more than 100 treaty-concluded countries and areas, resulting in improved export conditions, increased export and enlarged business. The entrance to WTO of China can not only increase China economy and direct investment from overseas, but also accelerate the transformation of advanced technologies and the reform of structure of industries and enterprises, and finally, optimize the competitive power of Chinese products both in domestic and overseas market.Since the establishment of diplomatic relations between China and Korea, the bilateral economic and trade relations have been made a rapid progress. With the continuous expansion of the come-and-go trade, the trade relationship between China and Korea must be affected by the entrance to WTO of China. Therefore, China is more and more becoming the focus of Korean Government and enterprises. In the past time, with a complementary relationship with China in the structure of commodities, Korea maintained active trade balance derived from preferential treatment from China. However recently, China has invested more in the development of Chinese industries, and Chinese products are becoming more and more competitive in international. While on the other hand, the commodities of Korea are being pushed out of international market. On the basis of an increasing role of China in global economic stage, this paper studies the status and issues of economic and trade relationship between China and Korea from the entrance to WTO of China to now, and analyzes the changes in this relationship between the two countries. The result of study can provide guidance for the further development of China-Korea relationship in trade and reduction of trade conflicts of two countries.