The Development Of China And Korea 's Automobile Industry And Its Enlightenment To China And South Korea

In2011, the bilateral trade volume reached＄245.63billion, nearly50times higher than at the beginning of the diplomatic ties. At present, China has become South Korea’s first largest trading partner and investment destination and tourist destination.Meanwhile, South Korea has become third largest trading partner in China. Auto industry in the economic development of the two countries share is very big. Signing FTA with China will exports to South Korea auto industry provide an excellent opportunity to learn and expanding investment, in promoting the development of automobile industry in both countries as well as the industrialization of both countries to play an active role.In the second chapter, China and South Korea can be seen in the status and characteristics of the auto industry of China has the resources advantage, industry development space is big also. And South Korea is not the two advantages. However, South Korean cars a lot on research and development costs. So very strong technical innovation factors. China and South Korea in the third chapter, in order to analyze the export situation of auto industry, the two countries selected from2003to2011China and South Korea, two countries export data to make RCA index. Also, in order to analysis of car items of the two countries in international trade is to belong to made a TSI Numbers exports or imports. Results show that South Korea is export advantage. At present South Korea auto parts (8701)(8708), tractors, buses (8702) on China’s trade specialization index still has a competitive advantage, but from the investigation in recent years, this advantage is presents the declining trend. Exports SWOT analysis as a result, China has the advantage of low cost. Chinese car disadvantage is no scale, Chinese car brand advantage. Into the advantage of Korean auto enterprises in China is compared with the prices, quality have competitive. Disadvantage is having technical differences from the leading enterprise, lack of abundant strategic model in the Chinese market, low brand image, the lack of recent popular green car technology ability. The fourth chapter, mentioned the china-south Korea FTA background and motivation. China-south Korea FTA is good for car industry cooperation between the two countries.Finally, make Suggestions on the method of auto industry cooperation between the two countries and conclusion. China and South Korea signed FTA, promote competition effect, scale effect, technology effect. South Korea at the same time can have the vast Chinese market. On April26,2013, the fifth round of negotiations was held in Harbin city, Heilongjiang province, China and South Korea free trade zone. On trade in goods, trade in services, investment, and in-depth exchange of views on other issues. In the short term, China-South Korea FTA is good for Korean auto export. Long-term dynamic effects in China, however, leads to greater good. Therefore, both sides agreed to continue maintaining the momentum of negotiations, have agreed on a negotiation model as soon as possible, to achieve mutual bene it and win-win results.