The Analysis Of China And South Korea Trade Situation, Strategy And Prospect

China and South Korea has as friendly neighbors, had a long history of communication. Because of similar cultural backgrounds, they have developed good conditions for a China-South Korea trading oppertunity. Furthermore, because these two countries are at two different stages of economic development, their different structures complement eachother, which leads to a economic trade cooperation that is good and necessary for both countries. Since China and South Korea established formal diplomatic relations in August 1992, their form of trading went from indirect to direct trading, which led to a increased volume of cooperations between these two countries. China managed to be Koreas third largest trading partner next to Japan and America. While South Korea maintained to be China′s fourth largest trading partner next to Japan, Hong Kong and America. China and South Korea has in the area of cooperate investments made remarkable developments. Especially South Korean companies investing in China. After the official start in 1992, it has developed all over the country. Between 1992 to 1998, China used 7.57 billion US Dollars in direct investment with South Korea, becoming South Korean largest investment partner. While South Korea also had direct investment with China, they also became the seventh largest source of investment country in the world. However, with the growing relations between China and South Korea, during this period there will also occure some problems. Therefore, it is necessary to identify the problems, analyze the reasons and take countermeasures.This paper structure:The first chapter is the development status and characteristics of China and south Korean trade. Mainly analyses the 1990s China and south Korean trade and at the beginning of the century. Then includes five parts, rapid development of bilateral trade and growth volatility is big; South Korea for Chinese investment faster, investment region from coastal inland outspread; China investment projects in South Korea number, amount is less; Trade imbalances, the Chinese deficit; Free trade and research has enters the essence and stage.The second chapter is about China and south Korean trade problems. Expounds both China and South Korea ought now trade imbalance phenomenon seriously, trade structure unreasonable, South Korea trade increasingly fierce competition and increase gradually sino-south Korean trade friction four questions. The Third chapter is China and south Korean trade development prospects. Through 19 years of China and south Korean trade on the two countries from scores of future trade development to make outlook. The forth chapter is China and south Korean countermeasures on trade and development. First to solve trade friction problem reasonably, secondly further adjust and optimize the mix of export commodities, finally develop technology trade promoting free trade and development, promote bilateral trade liberalization.