A Study On Expected Effects Of Korea-China FTA And Korea’s Strategies

As the integration of global economy deepens, the World Trade Organization, confronts the crisis of failing to achieve agreement on a multilateral basis. During the first half of the nineteen nineties, the Free Trade Agreement (FTA) appeared to symbolize bilateralism. With the continual development and expansion of FTA, China and Korea, as trader powers, must recognize the fact that it’s high time that they signed this agreement in order to rapidly further their development. Since China has been the biggest trade partner for Korea. And since China is contiguous to Korea, the research on the cooperation between China and Korea is becoming increasingly important. As the trading relationships between the two countries become closer, the profit brought by the integration of global economy is growing. Naturally it can be concluded that, if China and Korea both sign the Free Trade Agreement, much more profit can be expected for both nations. On the basis of this supposition, this research aims to investigate the problems concerned with signing FTA between China and Korea, such as strategic motivation, its economic effects and the existing major disputes, and this discuss the effects brought to the macroeconomic and the corresponding schemes.Based on the position and opinions stated above, this thesis makes full use of the research of existing achievements which are related to Sino-Korea FTA and adopts the method of documents researched. Based on all kinds of materials and theses, this theses focuses on consolidating its theory and the present situation, analyzing the trading situation, expected results, checking the weak links, and researching the strategic alignment between the two countries which are related to the signing of FTA.First, the theory of FTA and its different types, and current status of Sino-Korea economic exchanges, which lays theoretical foundation for analyzing the negotiation and further analyzing the economic effect of Sino-Korea FTA will be introduced. Then, by presenting the current status and the negotiation process thus far, the expected effects of Sino-Korea FTA and the weak areas in establishing it, followed by corresponding strategies to improve these weak areas will be analyzed. Finally, corresponding strategies for key negotiation problems, aims to promote the establishment of Sino-Korea FTA, enhance international trade in the two countries, and accelerate the development of South Korea will be provided.In comparison to previous academic achievements in this this area of research, this thesis brings something new to the picture in following aspects:Firstly, the innovations of this paper rely on the fact that due to my Korean origin, it is useful to search the extensive data concerning the Sino-Korea that has been written in Korea recently. Secondly, with the method of the combination of theoretical analysis and experimental analysis, this thesis respectively discusses the static economic effects and dynamic economic effects that the establishment of the Sino-Korea FTA may produce.