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Structural Changes in China's Import and Implications for the Korean Economy

  • Author LEE Sang Hun
  • Date2016-02-23
In the past, China sought economic development by boosting its processing trade based on its abundant labor power, and implemented various preference policy to attract foreign direct investment (FDI). However, a rise in negative influences led the Chinese government to implement a control policy on the processing trade after the mid-2000s, which is why the growth rate of processing imports has gradually slowed down. Changes in Chinas growth strategy and economic structure are influencing Chinas import structure, and Korea, 26% of whose exports depend on China, need to reestablish its export strategy to China by accurately understanding structural changes in Chinas imports. According to the analysis results, while Chinas import structure is rapidly shifting to a focus on general trade and consumer goods, Korea is maintaining an export structure focused on processing trade and intermediary goods. However, the swift enhancement of the industrial structure and technology innovation in China calls for a need to reestablish Koreas structure and strategy of export to China by adjusting to structural changes in Chinas import in the long term.
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