AbstractIn recent years, China-Korea exchanges have been increasing, China-Korea FTA negotiations with the heads of state of China and South Korea in November 2014 in Beijing *** with the announcement of the end of the substantive negotiations as well as February 25, 2015, China and South Korea to complete the initialling of all the text of the China-Korea FTA, and the content of the agreement was confirmed. At this point, all China-Korea FTA negotiations were completed. Since the signing of the FTA, after a transition period of up to 20 years, the Chinese zero-tariff products will reach 91% of the tariff lines and 85% of the imports, and the Korean zero-tariff products will reach 92% of the tariff lines and 91% of the imports, which will have a boosting effect on the exports of both countries. South Korea and China due to geographic proximity, similar habits and eating habits and other characteristics, Korean goods have been popular with the Chinese people, the number of people traveling to South Korea is also increasing year by year, cosmetics, household goods, clothing, electronic products and so on become the first choice of shopping for nationals traveling to South Korea. After the signing of the China-Korea Trade Agreement, more than 90% of the goods between the two sides will realize zero tariff, for Chinese consumers, means that in the future there will be more Korean goods into the Chinese market, consumers can not go to South Korea, do not need to buy on behalf of the country, in the country will be able to buy a variety of low-priced Korean goods. This paper mainly analyzes the impact of the establishment of China-Korea FTA on China's economy is both opportunities and challenges.
Keywords China-Korea FTA; opportunities; challenges; cooperation
I, the establishment of China-Korea FTA to China's economic opportunities
(a) promote the development of China's trade with South Korea
China-Korea FTA was established, the gradual elimination of tariff barriers within the FTA, which will help to realize the two sides of the liberalization of trade and enhance product competitiveness. China is South Korea's largest trading partner, the first export destination and the largest source of imports, South Korea is China's third largest country export market. China's main imports from South Korea are electromechanical products, optical medical equipment and chemical products, and China's main exports to South Korea are electromechanical products, base metals and products and chemical products. In the field of trade in goods, after the signing and entry into force of the China-Korea Agreement, after a transition period of up to 20 years, the products for which China will grant zero tariff to the ROK will amount to 91% of the tariff items and 85% of the import value; and the products for which the ROK will grant zero tariff to the Chinese side will amount to 92% of the tariff items and 91% of the import value, which will vigorously promote bilateral trade. In terms of trade in services, through the FTA negotiations, China and South Korea have resolved agreements on outbound tourism cooperation and medical care, while the two sides have pledged to continue negotiations on trade in services by launching the negative list mode within two years after the agreement comes into effect.
(II) Promoting investment growth between the two countries
In the investment field, China is the largest overseas investment destination for South Korea. Currently, Korean companies have invested nearly 60 billion U.S. dollars in China, making it a very important source of foreign investment in the country. The two sides have pledged to grant two-year employment and residence permits to investors and multinational corporations for internal contacts and one-year multiple-entry visas for business visitors; plus policy support for strong cooperation between the two countries' companies when the FTA is specifically signed later, in order to promote investment growth and investment cooperation between the two countries.
(C) promote the transformation of Chinese government functions
In the field of rules, China and South Korea reached a further strengthening of cooperation and regulatory integration of institutional arrangements. The China-Korea Free Trade Agreement (FTA) establishes rules in areas such as government procurement, competition policy and environmental protection, which need to be effectively implemented by both governments. For government departments, by adapting to the relevant rules of the China-Korea FTA in the field of public ****services, it will help promote the transformation of government functions and improve the quality and level of public ****services.