Study On The Driving Strategy Of FTA Between China And Korea

Nowadays, the world has come into the times, that the economic globalization and, cooperation localization are developing at the same time. On the other hand, the economic globalization , WTO as the reprensentive is developing lengthways. On the other hand, the organization of local economic incorporation are numberously coming forth, especially in recent years every country has attached importance to it as the development strategy of external trade, under the condition that the new round of WTO negotiation is not proceeding smoothly. From the important economic areas, we know that the degree of Eurpean incorporation is the highest and still expanding outward; the found of North America FTA strengthened the economical relationship between USA, Canada and Mexico, and greatly inceased the negotiation of this area; only the area of East-Asia does not the united incorporation organization, which does not correspond to the economic strength of this area. Although FTA has been founded, it is difficult to bring enough influence to Asia even the world without the participation of China, Japan and South Korea.Due to the complicated historical relations, the pocess of founding the incorporation organization of East-Asia area will be difficult. But although there are so many hardships , the countries of Esat-Asia have recognized and accepted the developing tendency and meanwhile taken some corresponding measure. This thesis thinks that the incorporation of East-Asia could take measures from simplility to difficult and from part to expending outward. Due to some historical reasons, FTA between China, Japan and South Korea that some scholars suggested seems to have a long way to go, but it exists great possibility to found FTA between China and South Korea. On the other hand, the twosides trade relation between China and South Korea is greatly enhancing. China has become the most important trade partner and the biggest export market of South Korea. On the other hand, the two country have the mutical complement in the economical aspect. At the same time the cultrual communication keeps close between the two countries. According to this kind of consideration, this thesis puts forward the developing stradegy of founding FTA between China and South Korea.The first part of this thesis introduces the basic theory of FTA. It contains the large market theory, customs union theory and the theory of international dividing functions.The second part of this thesis give careful analysis to the possibility of founding FTA between China and South Korea, that is to say, the founding of FTA between China and South Korea not only cooresponds to the wishes of two countries' people, but also is the result of the objective condition's development: (1) the both sides China and South Korea have the potential power to stand on the center of global economy (2) the geographic, cultural and economic relationships between China and South Korea. (3) A serial of the favorable conditions that each country has while building the FTA between China and South Korea. (4) The foreign relationships between the two countries. In the ending of this part, it also analyses the factors that hinder the development of the FTA between China and South Korea. FTA between China and South Korea has theorical and realistic feasibility, if only the weo countries flankly face all of these problems and seek the solution. This will be a reciprocal ending.The third part of this article mainly talks about the influences of FTA to both China and South Korea. It can enhance the welfare of both two countries; also it can improve the development of trade and enlarge the investment between two countries. The fourth part discusses the respective development strategy of the two countries' FTA; China will give an impulse to the trade liberalization through concluding the two side and multilateral free trade agreement and it will participate in areal cooperation in many ways. Centainly FTA between China and South Korea is one of the choices. In international levels China will keep on deepening the degree of participating in WTO in order to cope with influence of local economic incorporation and globalization on China's economics. For South Korea, the government will firstly exert the greatest benefical result of FTA to cautiously close the country that develops FTA with it. On the basis of considering the former lagging condition, the government of South Korea is making great efforts to develop the cooperation with many countiries in order to clase in time and make up the loses. Due to the particular cultural background of the nation, its government emphasizes the coincidence of the feeling of confirmation and agreement of the country in the process of founding FTA.The final part of the thesis, it comes up with several presumptions according to the actual conditions of the two countries and it also considers the present development of FTA between the both sides.FTA has already become a global trend. For China, whose country is over populated, and for South Korea whose country lacks natural resources, the main pursuit need to be in maximizing trade and commerce and in enduring economic growth, participation in trade and commerce and in enduring economic growth. Participation in trade in the region is no longer an option but a requirement in order for survival in the current international trend. China and South Korea both need to partake in the international movement of globalization and expansion of commerce.