The Analysis Of Sino-korean Trade Prospect In The FTA Framework

The trend of the global and regional economic integration will be enhanced with the rapid development of the world economy.The sign of Sino-Korean FTA,as an important part of East Asia economy,is an inevitable choice for the two countries to comply to the world economic development trend.China and South Korea have more and more frequent economic and trade exchanges after the two established diplomatic relations in 1992.The bilateral trade and investment are increasing year by year and the industrial cooperation areas are also enlarged in the past 26 years.The trade imbalance and friction happened from time to time due to the two countries' endowments difference of resource and export structure.China and South Korea formally signed FTA on June 1,2015,and FTA took effect since December 20.The sign of FTA had a big implication on bilateral trade and investment.This article will mostly analyze the problems appeared in Sino-Korean trade over the years and offer reasonable suggestions in the FTA framework.The paper is divided into six chapters.The first chapter is an introduction and introduces research background,objective,significance,review articles,means and methods.The second chapter is correlative general theories.This chapter expounds theoretical basis of Sino-Korean FTA,including advantage comparison theory,factor endowment theory,scale economy theory,intra-industry trade theory,customs union theory and free trade theory.These theories are the theoretical support for this paper.The third chapter is an overview of Sino-Korean FTA and it introduces the basic facts,background,strategic intention,signing process and effects after signing.The forth chapter analyzes the problems and reasons in the Sino-Korean trade relationship.The fifth chapter is the focal point of this paper and puts forward reasonable suggestions to solve the problem of Sino-Korean trade cooperation through the analysis of the cause of the problem.The sixth chapter is the conclusion part which is the prospect of China-ROK cooperation and the economic impact on the two countries and the surrounding areas mainly after the signing of the FTA between China and South Korea.