Discussion On The Possibility In Construction Of China-Korea FTA

Economic globalization and regional economic integration is the inevitable trend of world economy development, as well as an objective reflection of both modern social productive forces development and the transformation of relations of production. Currently, the most common form of regional economic integration is FTA (Free Trade Area), which is formed by two countries or more and is often in a bilateral form .Since 1990s, the development of FTA was inundant. Nearly 90% of the WTO members are subjected to different regional economic organizations .There were more than 190 applications for the establishment of FTA. But in East Asia, especially Northeast Asia there are few organizations of this kind, which are significantly less competitive than North America and the EU. Particularly there is no regional economic cooperation between China and South Korea which are playing vital roles in the in economy.There are geopolitical, cultural and economic relations between China and South Korea. Under this background, the two economies are highly inter-complementary .Considering whatever aspects ,the economic development or the foreign trade relations, China and South Korea to establish FTA is the best option for the development of the times. From the late 1990s, the China-South Korea FTA had already caused a highly attention of the two governments .China State Council Development Research Center and Korea External economic policies Institute are responsible for researches and feasibility studies of this special area, and some of the related northeast Asian economic research institutes also did researches of China - South Korea FTA in various aspects. By now, no substantial progress of China - South Korea FTA has been made, and the bilateral economic and trade relations have not improved significantly.