Korea-China FTA Research Articles

The complementary effects of ‘Made in China 2025’ industrial policy and trade liberalisation on China’s export of relevant products

ABSTRACT This research explores the synergy between China's 'Made in China 2025' (MIC25) policy and trade liberalization through FTAs, particularly their effect on export margins. Analyzing China's MIC25 product exports from 2011-2019 using DID models, it was found that post-MIC25 implementation, relevant exports saw marked growth in both intensive and quantity margins. Regression analysis revealed the China-Korea FTA significantly improved the quality or price margins of China's MIC25 exports to Korea. The increase in price margins was notably higher in FTA-partner countries. These findings indicate that FTAs enhance industrial policies by bettering market access and reducing costs for high-quality MIC25 products. This study adds to the discourse on trade liberalization and industrial policy's role in export performance, offering valuable insights for policymakers and businesses to understand trade policy impacts and craft industrial strategies complemented by trade liberalization.

한·중 FTA이후, 중국산 수산물 수입가격의 환율전가도 분석

Purpose - The aim of this study is to assess the impact of the Korea-China FTA on the exchange rate pass-through for the top ten imported fisheries products.
 Design/Methodology/Approach - In this study, we utilize the unit root test, cointegration test, and OLS regression analysis to investigate the long-term equilibrium relationship among exchange rates, real GDP, domestic fishery product prices, and the Korea-China FTA. These factors play a crucial role in influencing the prices of imported fisheries products from China.
 Findings - We found that the impact of the Korea-China FTA on import exchange rate pass-through depends on the market share held by fisheries products in the Korean import market. Specifically, following the implementation of the Korea-China FTA, fisheries products with a substantial market share in the Korean import market exhibited relatively high exchange rate pass-through. Conversely, for fisheries products with a lower market share, the exchange rate pass-through has decreased since the FTA came into effect.
 Research Implications - This study stands out from prior research by focusing on China, a dominant player in Korea's fisheries products market. We analyzed the Korea-China FTA's impact on exchange rate pass-through for ten specific fish products, categorized by market share. Our findings can assist domestic fishery product producers and policymakers in developing effective strategies based on market share within Korea's imported fisheries products market.

威海作为中韩FTA示范区的历史渊源探究: 以唐与新罗为例

On June 1, 2015, the China-Korea FTA was signed, making Weihai the first China-Korea FTA demonstration zone in China, which is inseparable from its prominent position in the history of China-Korea relations. Especially during the Tang Dynasty, the bilateral relationship between ancient Weihai and Silla was the most closely developed, and its specific role can be summarized as an important base for Silla's tribute and Tang Xin's joint military operations, an important port for diplomatic trade, and an important window for cultural exchange. This is also the historical origin and cultural motivation of Weihai and South Korea's geographical advantages, transportation advantages, economic and trade advantages, and cultural advantages under the context of China South Korea FTA. Weihai should leverage its own advantages, seize historical opportunities, and achieve greater development in areas such as economy, trade, culture, and tourism.

다중 FTA를 활용한 한⋅중 비즈니스 모델 연구: 소비재 수출을 중심으로

Since the establishment of diplomatic relations in 1992, China has developed into Korea's largest exporter. With the Korea-China FTA in 2015 and the RCEP in 2020, conditions have been created for Korean exporters to China to selectively utilize multiple FTA structures. In this regard, this paper studied guidelines and business models for Korean consumer goods exporters to utilize multiple FTAs. First, we designed a guideline by selectively utilizing multiple FTAs based on the criteria for determining the country of origin. In addition, ① a model by changing and combining the composition of raw materials among food products exported to China, ② a model to which the HS code was changed and applied by adjusting the composition of raw materials among foods exported to China, ③ a model that was changed to a classification favorable to the Korea-China FTA through a change in the HS code classification, ④ a model that reduced customs clearance costs by utilizing conditions for exemption from submission of certificates were suggested.

수입물품에 대한 한중FTA와 APTA 원산지규정의 적용에 관한 연구

Purpose: This paper compares and analyzes the rules of origin for the Korea-China FTA and the APTA, which are in effect between Korea and China, and are often mistaken for the same agreement.
 Research design, data, and methodology: This paper uses comparative legal methods and case analysis focusing on the Korea-China FTA and APTA origin regulations.
 Results: There are differences in the tariff reduction method, target items, country-oforigin standards, and follow-up applications to the tariffs under the Korea-China FTA and APTA.
 Conclusions: The Korea-China FTA and APTA are similar, but there are some differences, so it is necessary to compare and choose which agreement is more advantageous when applying tariffs on imported goods.

Korea-China FTA concession carve-out effects on garlic industry

Korea-China FTA concession carve-out effects on garlic industry

Impact of COVID-19 on Korea-China Import and Export Trade and Countermeasures

Purpose - This paper empirically investigates the changes and trends in export and import trade between Korea and China since 2000, especially after the establishment of Korea-China FTA and since the outbreak of COVID-19. This paper uses empirical analysis to determine the f uture t rade t ypes and t rends of import/ export trade between Korea and China and estimates the impact on import/export trade between Korea and China in the post-epidemic era.
 Design/Methodology/Approach - This paper first reviews the theories related to regional economic integration, sorts out the process of Korea-China FTA, and summarizes the changes and trends in import and export trade since COVID-19; second, it analyzes the current situation of bilateral trade between Korea and China using quantitative analysis, and investigates the specific impact of COVID-19 on Korea-China import and export trade using empirical analysis; finally, it summarizes the above studies, a conclusion is drawn, and policy recommendations are made to better utilize the challenges brought by COVID-19 to effectively address the problems that may be encountered in Korea-China trade and to promote the development of bilateral trade between the two countries.
 Findings - The global spread of the epidemic in Korea and China has led to the shutdown of both domestic and foreign operations, resulting in a foreign trade cliff effect in the short to medium term; the trade creation effect inspired by the international system dividend is no longer available in China in 2020, and the trade in goods is diminishing at the margin; the trade suppression effect is generated by the rise of international trade protectionism. The epidemic has led to a large upstream supply shortage pressure on the electronic information industry and the automobile manufacturing industry, and a large downstream demand shortage pressure on the energy industry and the electronic information industry.
 Research Implications - The establishment of Korea-China FTA will significantly promote bilateral trade between the two countries, change the trade and industrial structure of the two countries, and help to promote the development of the FTA strategy of the two countries; the outbreak of COVID-19 has changed the trade pattern and type, and the import and export of related epidemic prevention products as a new trade growth point and strengthened the trade market relationship between Korea and China.

한·중·FTA의 효율적 이행을 위한 원산지검증에 관한 연구

FTA 협정에 따라 특혜관세 혜택이 부여되므로 원산지에 대한 엄격한 확인이 요구된다. 이런 이유로 원산지 검증을 합법적인 무역재제 수단으로 악용하는 비중도 증가하고 있다. 원산지규정은 FTA 협정마다 상이하며, 자의적인 규정과 복잡한 검증절차를 적용할 경우 합법적인 무역장벽으로써 작용될 수 있기 때문에 무역분쟁의 단초가 될 우려가 있다. 따라서, FTA 협정하에 특혜관세가 얼마나 효율적으로 활용되는지 원산지 관련 규정에 대한 세심한 점검 및 관리가 요구된다.BR 한·중 FTA 체결 이후 수출입과정에서 FTA 활용도가 높게 나타났다. 반면, 중국은 수출규제 및 감독을 강화하고 있으며 이러한 조치와 함께 원산지검증이 엄격하게 강화될 경우 우리나라 기업에 미칠 영향은 커질 것이다. 이에 본 연구에서는 우리나라 수출기업의 대 중국 수출확대를 위하여 한·중 FTA의 효율적 이행을 위한 시사점을 제시하고자 한다.

Evaluation of the Policy Effects of Free Trade Agreements: New Evidence from the Korea-China FTA

Purpose – The policy implications of free trade agreements have traditionally been a matter of debate among economists. The official signing of the Korea-China Free Trade Agreement provides economists with a quasi-natural experiment to analyze the FTA’s policy effects. This article aims to more accurately understand the impact of Korea’s FTA accession on the macro economy. Design/methodology – This study adopts the counterfactual method based on panel data to find common factors in the generation process of macro data to fit the counterfactual path, to accurately evaluate the effect of the macro policy. Findings – Our research results show that the signing of the Korea-China FTA has a relatively significant short-term positive effect on Korea's economic growth. On average, Korea’s real GDP growth rate has increased by 2.1%. This study finds evidence in support of FTA signing not having a significant impact on Korea’s GDP growth in the long run. Additionally, we evaluated the impact of the FTA on Korea’s imports and exports and found that it had a significant positive impact in the short term, but the trade effect of the FTA is significantly affected by the external macro-environment. Originality/value – First, this study uses macro panel data at the national level to examine the impact of the Korea-China FTA on Korea, and more accurately describes the policy effect of the FTA. Second, our empirical results show that the Korea-China FTA policy impact is subject to occasional changes in the external environment, such as the geopolitical conflict (crisis) between Korea and China, and the US-China trade war. Finally, the analysis shows that the short-term effect of FTA is significant but the long-term is uncertain, which provides empirical evidence for the debate on whether joining FTA can promote national economic growth.

Impact of the Korea-China FTA on Korea’s Agricultural Products Imports: Using the Multi-Period Difference in Difference Model

Impact of the Korea-China FTA on Korea’s Agricultural Products Imports: Using the Multi-Period Difference in Difference Model

Rise of Geopolitics and Changing Korea and Japan Trade Politics

In the past decade, Korea and Japan have increasingly exhibited different strategic priorities in trade in face of China’s rising global economic prowess and worsening US-China trade conflict. Japan’s trade policy decisions have worked to reinforce its economic and security ties with the US as a means to counter China. Japan has used both bilateral and multilateral means to secure its ties with the US against China. In contrast, Korea’s trade policy positions have been one of ‘strategic ambiguity’. Korea has been more conciliatory towards China, reluctant to take actions that would counter China’s interest. Korea has mainly resorted to bilateral channels to maintain favorable relations with both China and the US. Korea’s reluctance to clearly ally with the US against China has been observed across different administrations with opposing political orientations. This paper examines Korea and Japan’s diverging strategic priorities in trade through the 2017 World Trade Organization Ministerial Conference; the 2017 US imposition of Section 232 on steel; the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Korea-US FTA renegotiation and the Korea-China FTA Phase Two Negotiation; and the 2019 Japan-US Trade Agreement.

A Study on Changes in Trade Volume and Competitiveness of Major Items after the Korea-China FTA Enforcement

본 연구에서는 한중 FTA가 체결 발효된 2015년 시점을 기준으로 한국의 주요 대중 수출 품목의 경쟁력이 어떻게 변화하였는지를 분석하는 것이다. 이를 위해 한국의 대중 20대 수출 품목을 HS 4단위로 분류하여 2011년부터 2020년까지 RCA와 SRCA 및 TSI를 산출하여 경쟁력을 분석하였다. 분석한 결과 한국 대 중국의 품목별 SRCA지수를 보면, 역시 2015년에는 HS8471 품목 하나만 음수(-)로 나타났으나, 2020년에는 4개 품목으로 나타나 한중 FTA이후 경쟁력이 약화된 것을 알 수 있다. 그리고 2015년 대비 경쟁력 약화 부분에서는 - 1 < TSI < 0, 사이에 위치한 품목은 7개 품목으로 나타났으며, 특히 한&#8228;중 FTA이후 수출특화에서 수입특화로 전환된 품목은 5개 품목으로 나타났다. 결론적으로 FTA발효 이후 경쟁력이 급격하게 낮아진 산업에 대해서는 정책 당국의 지원정책과 기업의 해외 거래선의 다변화 등의 내부적인 대응 전략이 필요하다고 본다.This study analyzes how the competitiveness of Korea s major export items to China has changed as of 2015, when the Korea-China FTA took effect. For this study, Korea s top 20 export items to China were classified into 4 HS units, and RCA, SRCA, and TSI were calculated from 2011 to 2020 to analyze competitiveness. As a result of the analysis, looking at the SRCA index for each item of Korea versus China, only one HS8471 item was negative (-) in 2015, but there were 4 items in 2020, indicating that competitiveness has weakened after the Korea-China FTA. And after the Korea-China FTA, 5 items were converted from export-specialized to import-specialized. In conclusion, for industries whose competitiveness has rapidly decreased after the entry into force of the FTA, it is necessary to develop a response strategy such as support policies from the policy authorities and diversification of overseas business partners.

A Study on the Coordination of the Korea-China FTA and the Third Amendment to the Copyright Law in China

A Study on the Coordination of the Korea-China FTA and the Third Amendment to the Copyright Law in China

A Study on Determinants of Chinese OFDI to Korea

OFDI is one of the key issues around the world in the development of economics, in 2013, Chinese President Xi JinPing proposed Belt One Road initiative on conference of Asia-Africa international conference with its core policy as (Outward Foreign Direct Investment).With the steady development of China's Belt One Road, further advancement of Korea-China FTA, and rapid expansion of close economic relations between two countries, China is bound to increase OFDI to Korea. The paper empirically studied its determinants of Chinese OFDI to Korea, with PANELDATA data introduced combining time series with cross-section, result shows GRDP, HV, YNTL, FWYS, XFZS are all verified as determinants of Chinese OFDI to Korea, while, several suggestions are proposed for Korea to attract Chinese OFDI.

Countermeasures for Follow-Up Negotiations on Korea-China FTA Service

한·중 FTA 서비스 분야의 후속협상에 대한 관심이 집중되고 있는 가운데 기대감이 높아지고 있다. 하지만 중국은 인도에 이어 두 번째로 서비스 분야의 해외자본 진입 제한이 높은 폐쇄적인 국가이다. 본 연구에서는 한·중 FTA 의료, 문화콘텐츠, 관광서비스의 후속협상으로 해결해야할 대응방안들을 모색하고자 하였다. 이를 위해 한·중 FTA 서비스 분야에 대한 선행연구와 서비스 수출 강국 사례를 토대로 분석결과를 도출하였다. 의료서비스분야는 원격서비스를 위해 디지털 방식으로 제공되는 일부 의료 및 건강 관련 서비스를 상호 양허하고, 데이터 관련 조항 등이 포함되어야 하며, 전자사증의 인터넷발급 및 보건의료서비스에 대한 높은 수준의 개방이 요구된다. 문화콘텐츠 분야는 중국의 규제철폐 및 완화 등의 협정 안 개정검토 등이 필요하며, 관광분야는 아웃바운드 및 최혜국대우에 대한 합의가 요구되어진다. 서비스 무역액에서 세계 2위를 달리고 있는 중국과 후속 FTA를 최대한 활용하여 중국 내수시장 각 분야로 진출할 계기가 될 것을 기대한다.Purpose: Following the negotiations in the Korea-China FTA service sector, expectations and interests are rising. However, China became the second country to close trading regulations along with India with a high limit on overseas capital entry in the service sector. This study attempted to find countermeasures that should be resolved through follow-up negotiations for Korea-China FTA medical care, cultural contents, and tourism services. Method & Results: To this end, the analysis results were derived based on previous studies on the Korea-China FTA service sector and cases regarding service export powerhouses. The medical service sector requires mutual concession of health-related services provided digitally for remote services, data-related provisions, and a high accessibility to health care services. The cultural contents sector needs to review the revision of the agreement, such as China s deregulation and regulatory easing, while the tourism sector needs to compromise on outbound and most-favored-nation treatment. Conclusion: Expectations arise with opportunity to make full use of the subsequent FTA with China, which ranks second in the world in terms of service trade, to advance into various sectors of China s domestic market.

A Study on the Export Strategy of China to the Cosmetic Industry

Purpose - The purpose of this study is to suggest strategies and solutions for entering China in the tariff and non-tariff sectors of the cosmetic industry. Design/methodology/approach - This study analyzed the import tariff rate of cosmetics in China, and analyzed the export cost by actually interviewing the exporting companies to derive the economic effect of non-tariff measures. Findings - First, We proposed the use of the FTA business model (basic cosmetics), the use of Korea-China FTA tariffs (foam cleansing, toothpaste), and the use of APTA tariffs (perfume). Second, We proposed cooperation between the governments to facilitate customs clearance procedures and improvement of FTA awareness among corporate practitioners. Third, We proposed the expansion and support of the AEO MRA system and the expansion of Korea-China MOU conclusions regarding the certification system, and the international standardization of domestic licensing system and technical conditions. Fourth, We proposed the use of government-supported projects related to obtaining overseas certifications and overseas expansion through collaboration with the same industry. Research implications or Originality - HS3304 products excluded from the Korea-China FTA should take full advantage of the FTA business model. In addition, the non-tariff measure costs are fixed costs per year, so the ratio decreases as the number of exports and export volume increases.

한국의 기 체결된 FTA 지식재산권 조항에 관한 비교 연구 - 한・중 FTA를 중심으로 -

한국의 기 체결된 FTA 지식재산권 조항에 관한 비교 연구 - 한・중 FTA를 중심으로 -

Analysis of Regulations on Nagoya Protocol in International Conventions and Countermeasures : Focused on the Korea-China FTA

2010년 10월 일본 나고야에서 개최된 생물다양성협약 당사국 총회에서 유전자원의 이용으로부터 발생하는 이익의 공정하고 공평한 공유에 관한 협약이 체결되었다. 1993 년 생물다양성협약이 체결되기 이전에는 각국은 유전자원을 인류의 공통유산으로 인 식하고 이를 이용한 이익 공유에 관심을 기울이지 않았었다. 그러나 유전자원에 대한 국가주권이 점차 강화되고, 유전자원으로부터 발생되는 이익을 유전자원 이용국과 제 공국이 공유함에 있어 일정한 가이드라인에 대한 필요성이 증대되었고, 이에 긴 협상 끝에 나고야의정서가 탄생하게 되었다. 그러나 나고야의정서는 유전자원 이용 및 이익 공유에 대한 기본원칙을 규정하고 있어 이와 관련된 분쟁 및 세부사항은 양국가간 개별적으로 협상을 해야할 것으로 여 겨지고 있다. 이에 최근 체결되는 각국간 FTA에서는 유전자원 접근 및 이익공유에 관련된 규정을 포함하고 있다. 한국은 특히 제약산업을 중심으로 중국으로부터 많은 양의 유전자원을 수입하고 있 으며 특히 나고야의정서상의 이익 공유는 유전자원을 이용하는 전통지식까지 포함하 고 있는 바, 한국과 중국은 지리적문화적으로 가까운 원인으로 전통지식에 관련된 부 분까지 분쟁대상이 될 것으로 여겨진다. 이에 2015년 12월 발효된 한중 FTA에서는 유전자원과 관련된 내용을 제15장 지식재 산권 챕터에서 포함하고 있다. 따라서 본 연구에서는 한중 FTA상 유전자원과 관련된 규정의 분석을 통하여 향후 우리의 유전자원의 이용 및 보호를 위한 방안을 제시하고 자 한다.

Structural relationships among shipper’s perception, value, and choice intention of Korea–China train ferry service

ABSTRACT The logistics environment between China and Korea has been changing rapidly in line with the ‘Go West’ policy of international trade and logistics area. The policy includes the BRI, Western Development Strategy, and Korea–China FTA. Against this background, the Korea–China train ferry (KCTF) is being newly illuminated as an alternative mode to cope with the logistics environment between Korea and China. One of the key success factors of the KCTF depends on, among others, shippers’ perception, which will affect the choice and the successful operation of the KCTF. From this perspective, this paper develops seven hypotheses based on the Theory of Reasoned Action (TRA) and Technology Acceptance Model (TAM). We test these hypotheses using Structural Equation Modeling (SEM) to explore the structural relationship between shippers’ behavioral beliefs influencing the perceived usefulness, the attitude toward and intention to choose the KCTF. The test results confirm that among the behavioral beliefs, transport accessibility in association with an efficient network of inland roads and railway networks is an important prerequisite. In addition, we verified a high statistical significance in the structural relationships among perceived usefulness, the attitude toward and the intention to choose the KCTF.

한ㆍ중 FTA 환경 분야 양자 이익 실현 가능성 연구 - 소각처리 시장 진출 방안을 중심으로 -

한ㆍ중 FTA 환경 분야 양자 이익 실현 가능성 연구 - 소각처리 시장 진출 방안을 중심으로 -