Impact Of China And South Korea FTA Will Have Bilateral Trade Structure Of Steel Products

The starting point of this paper is to ask questions of the impact of the China-Korea FTA between China and Korea steel products. Because the steel industry is one of the industry widely implications in other industries, so choose it as the analysis object.The research has three purposes, first, from the perspective of the macro level, evaluate the impact of the China-Korea FTA to steel industry in the two countries. Second, analyze the impact of the China-Korea FTA on various steel products division of competition. Third, the conclusions reached by the two procedures before the assessment to put forward the policy recommendations.Through reference and collate previous research has come to the impact of China-Korea FTA between the two countries in the macro level. Apply the rate of change of process to the various steel products, get the trade competitiveness index and intra-industry trade index, and predict the direction of change of the iron and steel products trade between the two countries. The same time, for the purpose of complement this research to combing the two countries’ tariffs on steel products and to predict the trend of changes to other countries in iron and steel trade and between China and Korea.The innovation of this paper is to implement the macro-level indicators to the indicators of the micro-level, at the same time trying to use a coherent logic to analyze the impact of China-Korea FTA. China’s tariffs on steel products is higher than in Korea, therefore, elimination of tariff effects caused by the China-Korea FTA is Korea’s exports to China is larger than South Korea to Chinese imports. So, the forecast of the China-Korea FTA will strengthen the division of labor structure and competition of the iron and steel products between the two countries. But the methods of research do not include the limitations of the Chinese steel industry and the rapid development of South Korea steel trading and other factors.Summarize the impact in macro level of the China-Korea FTA iron and steel industry in the two countries are as follows:the variables of the steel industry trade between the two countries is Korea’s exports and imports increased by5.1%and2.5%, China’s exports and imports increased by1.0%each and2.5%; Korea steel industry trade variable is forecast to be Korea’s export volume in China increased by22.6%, Korea increased by6.9%in Chinese imports. The rate of change applied to55steel products (HS4units) obtained the results of the index of trade competition and intra-industry trade index as follows:as the growth rate of Korean’s exports to China is bigger than the growth rate of Korea on Chinese imports, Korea’s exports to China of steel products export specialization index increased slightly, on the contrary, the specialization index of Korean imports of Chinese imports of steel products is dropped.Due to the rapid development of the technical level of China’s steel ind ustry, in the establishment of China-Korea FTA point time, show the reversal o f the possibility of comparative advantage products is very large, the Korean st eel industry should construct a real-time analysis system determinants to compar ative advantage.Also, in order to prevent excess supply of iron and steel indus try in the two countries, both of the two countries need to build a common co rresponding system. In addition, in order to strengthen the international competit iveness of the Korean steel industry, the development of technology continues t o invest at the same time, as well as existing strategic cooperation outside the restrictive merger, but also need to establish overseas investment strategies of th e mergers and acquisitions in domestic and foreign enterprises.