Composite Fabric,bonded fabric,Lamination Fabric Lamination Fabric News Half of the Korean companies in Weihai have evacuated, and China-South Korea economy and trade have reached a transition point.

Half of the Korean companies in Weihai have evacuated, and China-South Korea economy and trade have reached a transition point.



Which country is China’s largest trade deficit country? It is neither the United States nor Japan, but South Korea. In 2014, China’s trade deficit with South Korea reached nearly 100 billion US dollars. T…

Which country is China’s largest trade deficit country? It is neither the United States nor Japan, but South Korea. In 2014, China’s trade deficit with South Korea reached nearly 100 billion US dollars. The reason is that China mainly exports low-end industrial products, agricultural products and textiles, while South Korea’s exports to China are mostly high value-added products such as electronics, electromechanical and chemical products.
For a long time, in the economic and trade cooperation between China and South Korea, South Korea has occupied the high end of the industrial chain with its technology and R&D advantages, while China has gained comparative advantages with cheap land and labor. The two have formed industrial complementary cooperation. However, in recent years, as the cost of China’s factors has increased, the original “tacit understanding” of division of labor and cooperation between China and South Korea has become unsustainable, and China-South Korea economic and trade cooperation is in urgent need of transformation and upgrading. For this reason, the political, business and academic circles of both countries have set their sights on China-South Korea free trade. So, what opportunities and challenges will it bring to Chinese industries after the China-South Korea Free Trade Agreement comes into effect? ​​The reporter conducted an interview and investigation using Weihai, Shandong Province, the China-South Korea Free Trade Pioneer Zone, as a sample.
Authentic Korean barbecue shops are brightly lit, the aroma of “beer fried chicken” fills the streets, shop windows are filled with Korean products, and salespeople speaking Korean are chatting eagerly with Korean tourists… Since June, the number of Korean tourists has gradually increased, and the streets of Weihai It’s lively again.
As Weihai “gets a head start” in the China-South Korea free trade, the “Korean style” here is getting stronger and stronger. In the China-South Korea Free Trade Agreement (FTA) signed on June 1, China and South Korea respectively selected Weihai and Incheon as local economic cooperation demonstration zones.
However, with the transformation and upgrading of China’s economy and the gradual increase in factor costs, some of the original labor-intensive Korean-owned enterprises in Weihai are gradually leaving. According to Kim Jong-you, president of the Weihai Office of the Korean Chamber of Commerce, more than half of Korean companies have left Weihai since 2010.
Dong Yanling, dean of the Regional Economic Research Institute of Shandong University of Finance and Economics, said that with the transformation and upgrading of China’s economy, China-South Korea economy and trade have also reached the point of transformation and upgrading, and the signing of the China-South Korea FTA provides an opportunity for the transformation of economic and trade cooperation between the two countries.
However, Zhang Jianping, director of the Research Office of the Institute of Foreign Economics of the National Development and Reform Commission, said: “South Korea is the freest economy in Asia. It is unclear what impact the China-South Korea FTA will have on the policies and industries of the two countries, especially on China. OK.”
There are only more than 800 Korean companies left in normal operation in Weihai
When it comes to economic and trade exchanges between China and South Korea, Zhang Ping, general manager of Weihai Port Group, has personal experience. In September 1990, the Jinqiao liner departed from Incheon, South Korea, and arrived in Weihai. Before China and South Korea formally established diplomatic relations, this passenger and cargo ro-ro liner took the lead in setting up a “Golden Bridge” for non-governmental trade between the two countries.
With the formal establishment of diplomatic relations between China and South Korea in 1992, economic and trade exchanges between the two countries reached their first climax. According to Zhang Ping’s recollection, because he could enjoy visa-free arrival, the first passengers on the ship were mainly from South Korea, and these people were mainly “backpackers”. Zhang Ping said that in the history of China-South Korea trade, these “backpackers” who carried sacks weighing 30 to 40 kilograms and sold ties, clothing and fabrics produced in South Korea at the Weihai pier set off the first climax of China-South Korea trade.
At that time, China’s market economy had just started and goods were still in shortage. With the influx of Korean goods, Weihai built the country’s first Korean Commodity City, which is managed and operated through Weihai Port.
In the second year of the establishment of diplomatic relations between China and South Korea (1993), Weihai won the right to host the China-South Korea Economic and Trade Fair. It was held for eight times, establishing Weihai’s status as a “bridgehead” for economic and trade relations with South Korea.
At the same time, South Korea’s domestic industries have shifted from labor-intensive to technology- and capital-intensive. Industries such as automobiles, home appliances, and textiles have been forced to relocate. A large number of production lines such as Samsung and Daewoo have moved to China, setting off a second round of competition to seize the Chinese market. upsurge.
After 2000, Weihai promoted investment promotion in South Korea step by step, set up an investment promotion office in South Korea, and made every effort to build an investment promotion network in South Korea, and achieved fruitful results.
According to a report by Xinhuanet in August 2003, at that time, there were more than 1,800 Korean-owned companies in Weiwei, and the number was increasing at an average rate of at least one per day.
Data provided by the Weihai Municipal Commerce Bureau shows that as of the end of 2014, the stock of Korean capital in Weihai was US$1.63 billion, accounting for 17% of the stock of Korean capital in Shandong.
However, with the transformation and upgrading of the domestic economy, some labor-intensive enterprises, including Korean capital, have gradually relocated abroad. Data provided by the Weihai Municipal Commerce Bureau shows that as of the end of 2014, there were only 803 Korean-owned companies operating normally in Weihai. “More than half of the Korean companies that invested in Weihai in the past five years have chosen to go back.” Jin Zongyou told reporters frankly that the reason was the increase in production costs.
The reporter asked Park Yongquan, deputy general manager of Weihai Xianyou Paper Co., Ltd., a Samsung Electronics outsourcing company, to verify this statement. He said, “I have only been here for a year and a half. I have heard that there are many Korean-funded companies in Weihai, but I am here.” After that, many Korean companies did withdraw their capital.”
However, according to people from the Weihai Municipal Commerce Bureau, the increase in labor costs has also played a role in sweeping away the sand. The investment of Korean enterprises in Weihai and even China is gradually undergoing a qualitative change. “In the past, it was mainly focused on the secondary industry. Since last year, Korean-funded projects have focused on trade and catering.Take care of this. “A person from the Foreign Investment Section of Weihai Municipal Commerce Bureau told the reporter of “Daily Economic News”.
Park Yongquan said, “Korean companies that previously divested their capital were all companies that relied on labor to make money. Now they are more likely to choose regions with low labor costs like Southeast Asia.” On the contrary, companies with high technology content can continue to exist in Weihai. developed.
According to many Korean business people, China’s cheap land and labor, and South Korea’s technology and market once allowed China and South Korea to find complementarities in the manufacturing industry, but now, this complementary advantage has gradually disappeared.
Dong Yanling pointed out that the current Chinese economic structure has reached a point similar to that of South Korea’s economic transformation and upgrading in the 1990s. As domestic labor costs increase year by year, China-South Korea economic and trade has also reached a point of transformation and upgrading. The signing of the China-South Korea FTA has become a key factor in the transformation. Opportunity. Weihai and Incheon explore the economic and trade transformation of China and South Korea
Since 2015, Weihai’s “Korean style” has begun to become stronger. According to statistics from the Weihai Municipal Commerce Bureau, from January to May this year, the city approved 28 new Korean projects, a year-on-year increase of 47.4%, with contracted foreign investment of US$179.61 million, a year-on-year increase of 30.1%, accounting for 43.5% of the city’s total contracted foreign investment.
This strong “Korean style” mainly stems from expectations for China-South Korea free trade. With the signing of the China-ROK FTA, Weihai and Incheon have become China-ROK local economic cooperation demonstration zones, which is also the first of its kind in a global free trade agreement. According to the China-South Korea FTA, Weihai and Incheon are pilot projects, mainly in the fields of trade, investment, services, and industrial cooperation. Depending on the results of cooperation between the two places, they will be promoted to other cities in the two countries in a timely manner.
As a pilot field for local economic cooperation in the China-Korea Free Trade Zone, Weihai City is seeking policy support from the Shandong Provincial Party Committee, the provincial government and the national level, while actively strengthening negotiations with the Incheon Free Economic Zone.
On March 16, Weihai City issued the “First Batch Implementation Plan for Accelerating Local Economic Cooperation in the China-South Korea Free Trade Zone”, planning to build a pilot platform for China-South Korea free trade, a pioneering highland for China-South Korea industrial integration, a demonstration city for China-South Korea local cooperation, China-South Korea bilateral cooperation innovation experimental field.
On March 23, the Weihai Municipal Government organized a delegation to Incheon to conduct the first round of substantive negotiations with the Incheon Free Economic Zone Office. The Weihai Municipal Government proposed 56 projects. According to the initial idea and communication with Incheon, Weihai hopes to establish a China-Korea commodity distribution center and strive to open up the South Korea-Weihai-Central Asia/Europe freight route, turning Weihai from the original traffic terminal into a logistics center and hub city, in China, A major trade channel has been opened between Asia, Europe and South Korea.
At the same time, Weihai City also hopes to use this to promote in-depth opening up with Incheon in various fields, including tourism, medical care, beauty, health and wellness, finance, culture, fashion and creativity, service outsourcing, etc.
On April 24, the second round of negotiations between the two parties was held in Weihai. The delegations from both sides held consultations in the fields of tourism, medical beauty, bilateral investment, cross-border e-commerce, port connectivity, and industrial cooperation.
Dong Yanling analyzed to reporters that the most important task of Weihai and Incheon’s pilot project is to break through the existing bottlenecks in Sino-South Korean economic and trade and find a new cooperation model for the economic development of the two countries.
However, Zhang Jianping once pointed out: “South Korea is the freest economy in Asia. It is still uncertain what impact the China-South Korea FTA will have on the policies and industries of the two countries, especially on China.”
The reporter noticed that as of the signing of the China-South Korea FTA, South Korea has signed 12 FTAs ​​with 47 countries and regions. South Korea is the only country in the world that has signed FTAs ​​with the United States and the European Union at the same time.
The top-level design of the economic demonstration zone is about to be released
The reporter learned that Weihai and Incheon have established a docking consultation mechanism, and high-level officials exchange visits regularly. Both sides have established specialized agencies for local economic cooperation to jointly study pilot experiences that can be replicated and promoted in China and South Korea.
In order to seize the dividends of the China-South Korea FTA, on June 8, Huancui District of Weihai City and Zhong District of Incheon City held a strategic cooperation and key project signing ceremony, signing 18 key cooperation projects, covering e-commerce, medical beauty, folk culture, Tourism, goods trade, industrial parks and other fields.
It is understood that as the central urban areas of the two cities, Huancui District and Zhong District have established sister districts as early as 1998, and have close exchanges in industrial cooperation, cultural exchanges and other aspects.
A staff member of Weihai Municipal Commerce Bureau told reporters that it will take some time for the China-South Korea FTA to take effect. Weihai is seizing this time difference to cooperate with South Korea as soon as possible to guide companies to prepare for the Korean market.
A set of data previously released by the Korean National Tax Service shows that from 1998 to 2008, the number of Chinese companies entering South Korea increased from 118 to 445, the largest increase among foreign-invested companies. Data also from South Korea show that as of 2014, Weihai companies alone had invested US$70 million in South Korea. So far, more than ten Chinese companies have gone public in South Korea.
According to Dong Yanling, although the cooperation between Weihai and Incheon is still under discussion, the general trend will be a shift from vertical to horizontal, from intra-industry trade to inter-industry trade, from South Korea investing in China to mutual Investment transformation. “The China-Korea Free Trade Zone was the first to be tested in Weihai and Incheon, and the government’s
The top priority is to formulate and unify rules and policies, rather than focusing on specific commercial projects. ” Zhang Yunling, director of the Regional Security Research Center of the Chinese Academy of Social Sciences and president of the China Asia-Pacific Society, believes.
It is reported that the Weihai Municipal Government has formed two high-level expert teams to continue to carry out overall strategic research on cooperation with South Korea and carry out top-level design. In the near future, experts will give top-level designs for the Weihai and Incheon Free Economic Demonstration Zones.

Rules, policies, rather than focusing on specific business projects. ” Zhang Yunling, director of the Regional Security Research Center of the Chinese Academy of Social Sciences and president of the China Asia-Pacific Society, believes.
It is reported that the Weihai Municipal Government has formed two high-level expert teams to continue to carry out overall strategic research on cooperation with South Korea and carry out top-level design. In the near future, experts will give top-level designs for the Weihai and Incheon Free Economic Demonstration Zones.

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