China-south Korea Fta Negotiation Scheme Based On Game Theory For Secondary Research

This study analyzes the determinants of China’s FTA Policy and suggests the successful negotiation strategy for China-Korea FTA.China has been preceding FTA negotiations with34countries by2008. Main FTA negotiation partnerships are ASEAN10countries as well as Chile, Australia, Pakistan, GCC(Gulf Cooperation Council) and India. China launched FTA negotiations with Korea and ASEAN’s10countries and Chile, but with others stillbargaining or having joint-researching.From early China’s standpoint, China had not been certain about regional economic integration including FTA. China was skeptical about FTA for promotingAmerican hegemony in political and economic side. But after China’s accessionto WTO in2001, China’s new foreign policy has been landed. China, these days, has been devoting to be a leading influence in international economy with the United States of America with using globalization actively. Especially, after Asian financial crisis, China has been Choosing the FTA friendly policy because ofsecurity for economic stability and request for obtaining the natural resources.Besides these economic advantages available through FTA, China has threeother purposes of the consolidation of south-south cooperation through FTA; between developing country, gaining hegemony over East Asia and strategic construction of political and security cooperation in East Asia.China’s Strategic intention to from FTA is shown in Bangkok Agreement, ASEAN+3and SCO(shanghai Cooperation Organization). These regional economiccooperations will propel FTA continuously to direction that can make China a leading country of East Asia.This study adopts Putnam’s Two level game theory as analyzing frame work. The theory, one of the most useful game theories to analyze strategies in anynegotiation, explains that international negotiation between two countries or among more than two are necessarily intertwined with domestic decision making process. but also their own negotiator’s strategies and behaviors. This study examine s and suggests the successful negotiation strategy for future China-Korea FTAbyusing the Putnam’s two level game theory and the win-set theory.