Sino-Korea Free Trade Agreement and Asia-Pacific economic integration: the China perspective

Abstract

As an important element of Asian economic integration, a Sino-Korea (hereinafter referred to as South Korea only) Free Trade Agreement (FTA) is currently under negotiation. This paper analyses the potentially sensitive issues that might hinder the progress of the negotiations. We believe that a Sino-Korea FTA would exert great pressure on Japan, which may push forward China—Japan—Korea FTA negotiations. Economic integration in Northeast Asia will promote RCEP and FTAAP as well. Therefore, the Sino—Korea FTA should be viewed from a strategic perspective, and could be an important step towards Asia-Pacific economic integration.