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| Roh's visit to boost Sino－ROK economic relations |
| CCTV.COM 2003-07-08 12:07:10 |
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Economic and trade relations between China and the Republic of Korea have developed rapidly, despite the fact that diplomatic ties between the two nations have only existed for 11 years. And with ROK President Roh Moo－hyun's visit to China, a more favorable economic environment is expected to boost business exchanges between the two neighbors.
In just 11 years, China and the Republic of Korea have become each other's third largest trade partners. By the end of last year, the bilateral trade volume had reached 44 billion US dollars. Since the two countries established diplomatic relations in 1992, trade between them has grown by a steady 20 percent a year.
China is the largest recipient of ROK foreign investment. In addition to big firms like Samsung, LG, Daewoo, SK and Hyundai, up to 5,000 medium and small ROK companies have launched projects in China. Many business people say that geographical and cultural similarities, as well as China's attractive market, explain the increasing investment from the Republic of Korea.
Yuhn－Sihk Pahk, president of Korean Chamber of Commerce in China, said:"It means we can expect cheap transportation costs. Besides, we have long historical relations with each other, cultural relations as well. When we do business in China, Koreans feel at home easily. Of course, the most important thing is China's huge market, with a 1.3 billion population who have relatively potential power now since opening up."
Exports account for 70 percent of the ROK's GDP. By May, the ROK's exports to China had topped 12 billion US dollars, an almost 50 percent rise from the same period a year ago despite the impact of SARS.
One immediate issue that the two sides need to address might be the huge trade deficit China faces. Last year, the figure stood at 13 billion US dollars. However, experts say the ROK president will focus more on the improvement of the investment environment rather than solving the problem of tariff and non－tariff barriers.
Piao Jianyi, Exec. Director of Korean Issues Studies of Chinese Academy of Social Sciences, said:"I'm afraid issues concerning tariff barriers will not be on the agenda of Roh's meeting with Chinese leaders. I think he will discuss measures to protect ROK investors, such as the granting of national treatment."
Analysts say Roh's visit will give a major boost to efforts from both China and the Republic of Korea to expand economic relations and to minimize trade disputes.
China's huge market and its rapid development is attracting an influx of investment from the Republic of Korea. Currently, ROK investors are expanding their capital to other parts of China, as opposed to just a few northeastern cities. The Republic of Korea also expects China's western development strategy, the 2008 Olympics and 2010 World Expo to bring about unprecedented business opportunities .
Roh Moo－hyun's visit to further boost Sino－ROK relationship
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Editor: Xiao Wei CCTV.com
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